The Extra Surplus Company\'s Balance Sheet for December 31, 2015 and the Income

Question

The Extra Surplus Company's Balance Sheet for December 31, 2015 and the Income Statement for 2016 are shown below. Extra Surplus Company Balance Sheet December 31, 2015 Assets Cash Accounts Receivable $ 13,500 6,750 16,200 27,000 Property and Equipment, Net $ 63,450 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earnings $ 13,500 6,750 27,000 16,200 63,450 Extra Surplus Company Income Statement For the Year Ended December 31, 2016 Sales Cost of Goods Sold Salaries and Wage Expense Interest Expense Other Expenses S 22,100 5,100 5,100 1,700 850 Net Income $ 9,350

Explanation / Answer

Answer a Balance sheet at December 31,2016 EXTRA SURPLUS COMPANY Balance sheet at December 31 2016 2015 Cash 15000 13500 Accounts Receivables 15250 6750 Inventory 11100 16200 Property and equipment 35500 27000 Total Assets 76850 63450 Accounts Payable 4650 13500 Notes Payable ,Long term 5050 6750 Common stock 44000 27000 Retained Earnings 23150 16200 Total Liabilities and Equity 76850 63450 Answer b EXTRA SURPLUS COMPANY Statement of Cash flow (Direct Method) Year Ended December 31,2016 Cash flow from Operating activities Cash received from Customers $13,600.00 Cash paid to suppliers -$9,700.00 Cash paid for interest -$1,700.00 Cash paid to employees -$5,100.00 Net Cash used for Operating Activities -$2,900.00 Cash flow from Investing activities Purchase of land -$17,000.00 Sale of land $8,500.00 Net Cash used for investing Activities -$8,500.00 Cash flow from Financing activities Repayment of Long term note payable -$1,700.00 Issue of new shares of stock $17,000.00 Dividend paid -$2,400.00 Net Cash available from financing activities $12,900.00 Net Cash Surplus $1,500.00 Add : Cash balance 2015 $13,500.00 Cash balance 2016 $15,000.00

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