Lomax Company Comparative Balance Sheet Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments. Loans to subsidiaries Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year $ 81,000 $ 610,000 620,000 18,000 Last Year 58,000 635,000 430,000 10,000 1,329,000 1,133,000 2,420,000 1,840,000 569,000 627,000 1,793,000 101,000 130,000 $3,353,000 $2,639,000 1,063,000 670,000 1,733,000 1,271,000 160,000 75,000 $ 886,000 $ 580,000 31,000 51,000 146,000 126,000 757,000 430,000 1,187,000 1,110,000 1,010,000 510,000 442,000 1,620,000 1,452,000 $3,353,000 $2,639,000 The following additional information is available about the company's activities during this year: a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $390,000 were repaid during this year. c. Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52,000 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $130,000. These investments had cost $59,000 when purchased several years ago. e. The subsidiaries did not repay any outstanding loans during the year. f. Lomax did not repurchase any of its own stock during the year.
Lomax Company Comparative Balance Sheet Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments. Loans to subsidiaries Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year $ 81,000 $ 610,000 620,000 18,000 Last Year 58,000 635,000 430,000 10,000 1,329,000 1,133,000 2,420,000 1,840,000 569,000 627,000 1,793,000 101,000 130,000 $3,353,000 $2,639,000 1,063,000 670,000 1,733,000 1,271,000 160,000 75,000 $ 886,000 $ 580,000 31,000 51,000 146,000 126,000 757,000 430,000 1,187,000 1,110,000 1,010,000 510,000 442,000 1,620,000 1,452,000 $3,353,000 $2,639,000 The following additional information is available about the company's activities during this year: a. The company declared and paid a cash dividend this year. b. Bonds with a principal balance of $390,000 were repaid during this year. c. Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52,000 in accumulated depreciation on the date of sale. d. Long-term investments were sold during the year for $130,000. These investments had cost $59,000 when purchased several years ago. e. The subsidiaries did not repay any outstanding loans during the year. f. Lomax did not repurchase any of its own stock during the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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Transcribed Image Text:Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Inventory
Prepaid expenses
Lomax Company
Comparative Balance Sheet
Total current assets
Property, plant, and equipment
Less accumulated depreciation
Net property, plant, and equipment
Long-term investments
Loans to subsidiaries
Total assets
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
Accrued liabilities
Income taxes payable.
Total current liabilities.
Bonds payable
Total liabilities
Stockholders' equity:
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
The company reported net income this year as follows:
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Nonoperating items:
Gain on sale of investments
This Year
$
Loss on sale of equipment
Income before taxes
Income taxes
Net income
Last Year
81,000 $
610,000
620,000
18,000
1,329,000 1,133,000
2,420,000 1,840,000
627,000
569,000
1,793,000
1,271,000
101,000
160,000
130,000
75,000
$3,353,000 $2,639,000
The following additional information is available about the company's activities during this year:
58,000
635,000
430,000
10,000
$ 886,000 $ 580,000
31,000
51,000
146,000
126,000
a. The company declared and paid a cash dividend this year.
b. Bonds with a principal balance of $390,000 were repaid during this year.
c. Equipment was sold during this year for $75,000. The equipment had cost $150,000 and had $52,000 in accumulated depreciation
on the date of sale.
d. Long-term investments were sold during the year for $130,000. These investments had cost $59,000 when purchased several
years ago.
e. The subsidiaries did not repay any outstanding loans during the year.
f. Lomax did not repurchase any of its own stock during the year.
$ 71,000
1,063,000
757,000
670,000
430,000
1,733,000 1,187,000
1,110,000 1,010,000
510,000
442,000
1,620,000
1,452,000
$3,353,000 $2,639,000
(23,000)
$3,200,000
1,984,000
1,216,000
983,000
233,000
48,000
281,000
90,000
$ 191,000
Transcribed Image Text:Operating activities:
Investing activities:
Financing activities:
Lomax Company
Statement of Cash Flows
Beginning cash and cash equivalents
Ending cash and cash equivalents
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