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

Cash flow operatinmg actiivities Net income 59328 Adjustments Loss on sale of equipment (10000-(21941-9941)) -2000 dep exp 16882 Patent amortization 2500 Increase in current liabilities 14941 increase in current assets -29000 3323 Net cash provided by operating ativies 62651 cash flow from investing activies Sale of eqipment 10000 Addition to building -28941 Investment in stock -11000 Net cash used by investing activites -29941 Cash flow from financing activites Issuance of bonds 52422 payment of dividesnds -30000 purhase of treasury sock -11000 net cash provided by financing activiteies 11422 Net increase in cash 44132 Current asset (236941+29000+44132) 310073 Long term investment 16000 Property , plant and investment Land 32422 Building (121941+28941) =150882 less Accum. Dep (31941+5941) =37882 113000 Equipment (92422-21941) =70481 less Accum. Dep (11000-9941+10941)=12000 58481 Total property , plant and equipment 203903 Intangible assets - patents (41941-2500) 39441 Total assets 569417 Current liabilties (151941+14941) 166882 Long term laibilties Bonds payable (101941+52422) 154363 Total liabilties 321245 Stockholders equity Common stock 182422 retained earnings (46422+59328-30000) 75750 Total paid in capital and retained earning 258172 less cost of treasury stock -11000 Total stock holders equity 247172 Total liabilties and Stockholders equity 569417

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.