BRECKER INC. COMPARATIVE BALANCE SHEET As OF DECEMBER 31, 2014 AND 2013 12/31/14 12/31/13 $ 6,000 62,000 35,000 40,000 5,000 154,000 (35,000) 46,000 $ 7,000 51,000 18,000 60,000 4,000 130,000 (25,000) 50,000 Cash Accounts receivable Short-term investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets $313,000 $295,000
BRECKER INC. COMPARATIVE BALANCE SHEET As OF DECEMBER 31, 2014 AND 2013 12/31/14 12/31/13 $ 6,000 62,000 35,000 40,000 5,000 154,000 (35,000) 46,000 $ 7,000 51,000 18,000 60,000 4,000 130,000 (25,000) 50,000 Cash Accounts receivable Short-term investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets $313,000 $295,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:BRECKER INc.
COMPARATIVE BALANCE SHEET
As OF DECEMBER 31, 2014 AND 2013
12/31/14
12/31/13
$ 6,000
62,000
35,000
40,000
5,000
154,000
(35,000)
46,000
$7,000
51,000
18,000
60,000
4,000
130,000
(25,000)
50,000
Cash
Accounts receivable
Short-term investments (available-for-sale)
Inventory
Prepaid rent
Equipment
Accumulated depreciation-equipment
Copyrights
Total assets
$313,000
Accounts payable
Income taxes payable
Salaries and wages payable
Short-term loans payable
Long-term loans payable
Common stock, $10 par
Contributed capital, common stock
Retained earnings
$ 46,000
4,000
8,000
8,000
60,000
100,000
30,000
57,000
$295,000
$ 40,000
6,000
4,000
10,000
69,000
100,000
30,000
36,000
Total liabilities and stockholders' equity
$313,000
$295,000
BRECKER INc.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2014
$338,150
175,000
Sales revenue
Cost of goods sold
Gross profit
Operating expenses
163,150
120,000
Operating income
Interest expense
Gain on sale of equipment
43,150
$11,400
2,000
9,400
Income before tax
33,750
Income tax expense
6,750
Net income
$ 27,000
Additional information:
1. Dividends in the amount of $6,000 were declared and paid during 2014.
2. Depreciation expense and amortization expense are included in operating expenses.
3. No unrealized gains or losses have occurred on the investments during the year.
4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2014.
Instructions
Prepare a statement of cash flows using the indirect method. (Do not prepare a reconciliation schedule.)
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education