You are the controller of the Claire Underwood Corporation. On January 1, 2018,

Question

You are the controller of the Claire Underwood Corporation. On January 1, 2018, after the 2017 fiscal year has ended, you have the following information in front of you: December 31, Assets: 2017 2016 Cash $21,100 $15,600 Accounts receivable 1,000 850 Inventories 900 PP&E;, net 20,000 18,000 TOTAL ASSETS: 42,800 35,350 700 | Liabilities: Accounts payable Long-term debt TOTAL LIABILITIES: 350 il 800 13,000 13,800 10,000 10,350 55 50 Shareholders' Equity: Common stock Additional paid-in capital Retained earnings TOTAL SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY: 5,545 23,400 29,000 4,550 20,400 25,000 42,800 35,350 During the fiscal year 2017, the following events occurred: 1. The company paid off $2,000 of its long-term debt during the year. In addition, the company borrowed $__ payable in 3 years. 2. Depreciation expense was $3,000. 3. The company purchased new PP&E; at the amount of $8,100, in cash. 4. The company sold PP&E; for $2,300 in cash. The net book value of PP&E; sold was $1,600. 5. The company recorded an impairment charge of $_ on its PP&E.; 6. The company issued 500 shares with a par value of $0.01 (per share). The share price was $2 per share and was paid to the company in cash. 7. Net income in 2017 was $3,500. 8. The company declared and paid dividends during 2017 at the amount of $ in cash.

Explanation / Answer

2017 Operating Investing Financing 2016 Cash 21100 -7800 5800 -3500 15600 Account Receivable 1000 -150 850 Inventories 700 200 900 PPE & net 20000 4500 -6500 18000 Accounts Payable -800 450 -350 Long Term Debt -13000 3000 -10000 Common Stock -55 5 -50 Additional Paid in capital -5545 995 -4550 Retained Earnings -23400 2800 700 -500 -20400 Total 0 0 0 0 0

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