How has your company's stock been doing recently and over the longer term? Lola's Company Statement of Owner's Equity December 31st, 2020 How has your company's stock been doing recently and over the longer term? Owner's Equity at Beginning of Year $400,000 Net Income for the Year $130,000 Issuance of Common Stock $50,000 Dividends Paid ($30,000) Owner's Equity at End of Year $550,000 Lola's Сощряву Balance Sheet December 31st, 2020 Assets Cash and Cash Equivalents Accounts Receivable $100,000 $150,000 Inventory $200,000 $50,000 Prepaid Expenses Property, Plant and Equipment $500,000 Total Assets $1,000,000 Liabilities Accounts Payable $100,000 Notes Payable Accrued Expenses $200,000 $50,000 Total Liabilities $350,000 Owner's Equity Common Stock $250,000 Retained Eamings $400,000 Total Owner's Equity $650,000 Total Revenue $510,000 Expenses Cost of Goods Sold $200,000) Depreciation Expense $50,000) Salaries and Wages Expense $100,000) Rent Expense $30,000) Total Expenses ($380,000) Net Income $130,000 Lola's Company Statement of Cash Flow December 31st, 2020 Cash Flows from Operating Activities Net Income Depreciation Expense $50,000 $100,000 Increase in Accounts Receivable ($30,000) Increase in Inventory ($20,000) Decrease in Prepaid Expenses $10,000 Net Cash Provided by Operating Activities $110,000 Cash Flows from Investing Activities Purchase of Property, Plant and Equipment ($100,000) Net Cash Used in Investing Activities $100,000) Cash Flows from Financing Activities Proceeds from Issuance of Common Stock $50,000 Repayment of Notes Payable ($30,000) Net Cash Provided by Financing Activities $20,000 Net Increase in Cash and Cash Equivalents $30,000 Total Liabilities and Owner's Equity $1,000,000 Lola's Company Income Statement December 31st, 2020 Revenue Sales Revenue $500,000 Interest Income $10,000
How has your company's stock been doing recently and over the longer term? Lola's Company Statement of Owner's Equity December 31st, 2020 How has your company's stock been doing recently and over the longer term? Owner's Equity at Beginning of Year $400,000 Net Income for the Year $130,000 Issuance of Common Stock $50,000 Dividends Paid ($30,000) Owner's Equity at End of Year $550,000 Lola's Сощряву Balance Sheet December 31st, 2020 Assets Cash and Cash Equivalents Accounts Receivable $100,000 $150,000 Inventory $200,000 $50,000 Prepaid Expenses Property, Plant and Equipment $500,000 Total Assets $1,000,000 Liabilities Accounts Payable $100,000 Notes Payable Accrued Expenses $200,000 $50,000 Total Liabilities $350,000 Owner's Equity Common Stock $250,000 Retained Eamings $400,000 Total Owner's Equity $650,000 Total Revenue $510,000 Expenses Cost of Goods Sold $200,000) Depreciation Expense $50,000) Salaries and Wages Expense $100,000) Rent Expense $30,000) Total Expenses ($380,000) Net Income $130,000 Lola's Company Statement of Cash Flow December 31st, 2020 Cash Flows from Operating Activities Net Income Depreciation Expense $50,000 $100,000 Increase in Accounts Receivable ($30,000) Increase in Inventory ($20,000) Decrease in Prepaid Expenses $10,000 Net Cash Provided by Operating Activities $110,000 Cash Flows from Investing Activities Purchase of Property, Plant and Equipment ($100,000) Net Cash Used in Investing Activities $100,000) Cash Flows from Financing Activities Proceeds from Issuance of Common Stock $50,000 Repayment of Notes Payable ($30,000) Net Cash Provided by Financing Activities $20,000 Net Increase in Cash and Cash Equivalents $30,000 Total Liabilities and Owner's Equity $1,000,000 Lola's Company Income Statement December 31st, 2020 Revenue Sales Revenue $500,000 Interest Income $10,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:How has your company's stock been doing recently and over
the longer term?
Lola's Company
Statement of Owner's Equity
December 31st, 2020
How has your company's stock been doing recently
and over the longer term?
Owner's Equity at Beginning of Year
$400,000
Net Income for the Year
$130,000
Issuance of Common Stock
$50,000
Dividends Paid
($30,000)
Owner's Equity at End of Year
$550,000
Lola's Сощряву
Balance Sheet
December 31st, 2020
Assets
Cash and Cash Equivalents
Accounts Receivable
$100,000
$150,000
Inventory
$200,000
$50,000
Prepaid Expenses
Property, Plant and Equipment
$500,000
Total Assets
$1,000,000
Liabilities
Accounts Payable
$100,000
Notes Payable
Accrued Expenses
$200,000
$50,000
Total Liabilities
$350,000
Owner's Equity
Common Stock
$250,000
Retained Eamings
$400,000
Total Owner's Equity
$650,000
Total Revenue
$510,000
Expenses
Cost of Goods Sold
$200,000)
Depreciation Expense
$50,000)
Salaries and Wages Expense
$100,000)
Rent Expense
$30,000)
Total Expenses
($380,000)
Net Income
$130,000
Lola's Company
Statement of Cash Flow
December 31st, 2020
Cash Flows from Operating Activities
Net Income
Depreciation Expense $50,000
$100,000
Increase in Accounts Receivable ($30,000)
Increase in Inventory ($20,000)
Decrease in Prepaid Expenses
$10,000
Net Cash Provided by Operating Activities
$110,000
Cash Flows from Investing Activities
Purchase of Property, Plant and Equipment
($100,000)
Net Cash Used in Investing Activities
$100,000)
Cash Flows from Financing Activities
Proceeds from Issuance of Common Stock
$50,000
Repayment of Notes Payable
($30,000)
Net Cash Provided by Financing Activities
$20,000
Net Increase in Cash and Cash Equivalents
$30,000
Total Liabilities and Owner's Equity
$1,000,000
Lola's Company
Income Statement
December 31st, 2020
Revenue
Sales Revenue
$500,000
Interest Income
$10,000
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