Exercise 5-17 Grant Wood Corporation\'s balance sheet at the end of 2013 include

Question

Exercise 5-17 Grant Wood Corporation's balance sheet at the end of 2013 included the following items. $236,941 Current liabilities $151,941 Current assets 101,941 Land 32,422 Bonds payable 121,941 Common stock Buildings 182,422 Equipment 92,422 Retained earnings 46,422 $482,726 Accum. depr.-buildings 31,941) Total Accum. depr.-equipment 11,000) 41,941 Patents $482,726 Total The following information is available for 2014. 1. Net income was $59,328 Equipment (cost $21,941 and accumulated depreciation $9,941) was sold for $10,000 3. Depreciation expense was $5,941 on the building and $10,941 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,941. 6. An addition to the building was completed at a cost of $28,941. 7. A long-term investment (Equity) in stock was purchased for $16,000. 8. Bonds payable of $52,422 were issued. 9. Cash dividends of $30,000 were declared and paid 10. Treasury stock was purchased at a cost of $11,000.

Explanation / Answer

Calculation of change in Cash:

Cash Flow Statement Income from operation 59328 Add: Depreciation 16882 Patent 2500 Increase in Liabilities 14941 Less Increase in current Assets -29000 Add Sale of equipment 10000 Less Addition to buildings -28941 Less Investment in equity -16000 Add Issue of Bonds 52422 Less Cash dividend paid -30000 Less Purchase of Treasury Stock -11000 Increase in cash 41132

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