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Business
Accounting
Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income Current Year $ 37,000 32,000 41,000 132,000 (41,000) $201,000 $36,000 1,200 38,000 88,600 37,200 $201,000 $120,000 70,000 37,800 $ 12,200 Prior Year $ 29,000 28,000 38,000 111,000 (36,000) $170,000 $ 27,000 1,400 44,000 72,600 25,000 $170,000

Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income Current Year $ 37,000 32,000 41,000 132,000 (41,000) $201,000 $36,000 1,200 38,000 88,600 37,200 $201,000 $120,000 70,000 37,800 $ 12,200 Prior Year $ 29,000 28,000 38,000 111,000 (36,000) $170,000 $ 27,000 1,400 44,000 72,600 25,000 $170,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the Cash balance for January 1, current year (it’s highlighted) using that info
The table illustrates the cash flow statement, detailing financial activities and their impacts on cash flow. **Net Income:** - Net income is reported as $12,200. **Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:** - **Depreciation Expense:** $5,000 - **Increase in Accounts Receivable:** ($4,000) - **Increase in Merchandise Inventory:** ($3,000) - **Increase in Accounts Payable:** $9,000 - **Decrease in Accrued Wage Expense:** ($200) Resulting in: - **Net Cash Provided by Operating Activities:** $6,800 **Net Cash from Operating Activities:** $19,000 **Cash Flows from Investing Activities:** - **Cash Payments to Purchase Property and Equipment:** ($21,000) Resulting in: - **Net Cash Used in Investing Activities:** ($21,000) **Cash Flows from Financing Activities:** - **Cash Payments on Long-term Note:** ($6,000) - **Cash Receipts from Issuing Stock:** $16,000 Resulting in: - **Net Cash Provided by Financing Activities:** $10,000 **Summary:** - **Net Increase in Cash During the Year:** $8,000 - **Cash Balance, January 1, Current Year:** $0 Ending with: - **Cash Balance, December 31, Current Year:** $8,000 The statement tracks the flow of cash within a company, displaying how various activities contribute to or reduce cash reserves.
Transcribed Image Text:The table illustrates the cash flow statement, detailing financial activities and their impacts on cash flow. **Net Income:** - Net income is reported as $12,200. **Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:** - **Depreciation Expense:** $5,000 - **Increase in Accounts Receivable:** ($4,000) - **Increase in Merchandise Inventory:** ($3,000) - **Increase in Accounts Payable:** $9,000 - **Decrease in Accrued Wage Expense:** ($200) Resulting in: - **Net Cash Provided by Operating Activities:** $6,800 **Net Cash from Operating Activities:** $19,000 **Cash Flows from Investing Activities:** - **Cash Payments to Purchase Property and Equipment:** ($21,000) Resulting in: - **Net Cash Used in Investing Activities:** ($21,000) **Cash Flows from Financing Activities:** - **Cash Payments on Long-term Note:** ($6,000) - **Cash Receipts from Issuing Stock:** $16,000 Resulting in: - **Net Cash Provided by Financing Activities:** $10,000 **Summary:** - **Net Increase in Cash During the Year:** $8,000 - **Cash Balance, January 1, Current Year:** $0 Ending with: - **Cash Balance, December 31, Current Year:** $8,000 The statement tracks the flow of cash within a company, displaying how various activities contribute to or reduce cash reserves.
**Balance Sheet as of December 31** **Current Year | Prior Year** - **Assets:** - Cash: $37,000 | $29,000 - Accounts Receivable: $32,000 | $28,000 - Merchandise Inventory: $41,000 | $38,000 - Property and Equipment: $132,000 | $111,000 - Less: Accumulated Depreciation: ($41,000) | ($36,000) **Total Assets: $201,000 | $170,000** - **Liabilities and Equity:** - Accounts Payable: $36,000 | $27,000 - Accrued Wages Expense: $1,200 | $1,400 - Note Payable, Long-term: $38,000 | $44,000 - Common Stock and Additional Paid-in Capital: $88,600 | $72,600 - Retained Earnings: $37,200 | $25,000 **Total Liabilities and Equity: $201,000 | $170,000** --- **Income Statement for Current Year** - Sales: $120,000 - Cost of Goods Sold: $70,000 - Other Expenses: $37,800 **Net Income: $12,200**
Transcribed Image Text:**Balance Sheet as of December 31** **Current Year | Prior Year** - **Assets:** - Cash: $37,000 | $29,000 - Accounts Receivable: $32,000 | $28,000 - Merchandise Inventory: $41,000 | $38,000 - Property and Equipment: $132,000 | $111,000 - Less: Accumulated Depreciation: ($41,000) | ($36,000) **Total Assets: $201,000 | $170,000** - **Liabilities and Equity:** - Accounts Payable: $36,000 | $27,000 - Accrued Wages Expense: $1,200 | $1,400 - Note Payable, Long-term: $38,000 | $44,000 - Common Stock and Additional Paid-in Capital: $88,600 | $72,600 - Retained Earnings: $37,200 | $25,000 **Total Liabilities and Equity: $201,000 | $170,000** --- **Income Statement for Current Year** - Sales: $120,000 - Cost of Goods Sold: $70,000 - Other Expenses: $37,800 **Net Income: $12,200**
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