The comparative balance sheets for 2016 and 2015 and the income statement for 20

Question

The comparative balance sheets for 2016 and 2015 and the income statement for 2016 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) 2016 2015 S 140 S 93 Accounts receivable 16 212 219 17 Prepaid insurance Buildings and equipment (110) (144) $ 1,380 $1,189 $ 62 89 Accounts payable Salaries payable Bond interest payable Income tax payable Deferred income tax liability Notes payable Lease liabilty Bonds payable 16 35 35 94 (40) Less: Discount on bonds Shareholders' Equity Common stock Paid-in captal-excess of par Preferred stock Retained earmings (34) 478 Less: Treasury stock $1,380 $1,189 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2016 528 Sales revenue Investment revenue Gain on sale of treasury bills 3 $555 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Patent amortization expense 192 13 Bond interest expense Loss on machine damage Income tax expense 48 423 Net income $132

Explanation / Answer

Arduous Company Cash flow for operating activities under direct method Cash receipts from customers Opening Accounts receivable 218 Add : Sales 528 Less : Closing accounts receivable 202 544 Payment made to suppliers Ending Inventory 219 Add : cost of goods sold 192 Less : Beginning Inventory 212 Inventory purchased 199 Add : Beginning Accounts payable 89 Less : Ending Accounts Payable 62 -226 Operating expenses paid Salaries paid Salaries expenses 85 Less: Closing Salary Payable 30 Add : Opening Salary Payable 19 -74 Insurance paid Insurance expenses 19 Add : Closing prepaid insurance 17 Less : Opening prepaid insruance 24 -12 Income tax paid Income tax expenses 48 Add : Opening Income tax payable 28 Less : Closing Income tax payable 24 -52 Cash flows from operating activities 180

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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