Question Description The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2013 Revenue: Net sales………………………………………..$3,200,000 Interest income………………………………….. . 45,000 Gain on sale of marketable securities…….………...34,000 Total revenue…………………………………..$3,279,000 Costs and expenses: Cost of goods sold…………………………………………... $1,620,000 Operating expenses (including depreciation of $150,000)….1, 240,000 Interest expense…………………………………………….…...42,000 Income taxes…………………………………………….……....100,000 Loss on sale of plant Assets.....................................................…...12,000 Total Costs and expenses…………………………..………. $3,014,000 Net income………………………………………….…………. $260,000 Changes in the Company’s balance sheet accounts over the year are summarized as follows: Accounts receivable increased by $60,000 Accrued interest receivable decreased by $2,000 Inventory decreased by $60,000, and Account payable decreased by $16,000 Short term prepayments of operating expenses increased by $6,000 and accrued liabilities for operating expenses decreased by $8,000 The liability for accrued interest payable increased by $4,000 during the year. The liability for accrued income taxes payable decreased by $14,000 during the year. The following schedule summarizes the total debit and credit entries during the year: Selected account balances: Debit entries Credit entries Marketable securities $60,000 $38,000 Notes receivable 44,000 28,000 Plant assets 500,000 36,000 Notes payable 92,000 82,000 Capital Stock 20,000 Additional Paid-in capital 160,000 Retained earnings 120,000 260,000 The $ 36,000 in credit entries to the plant assets account is net of any debits to Accumulated depreciation when plant assets were retired. Thus the $36,000 in credit entries represents the book value of all plant assets sold or retired during the year The $ 120,000 debit to the retained earnings represents the dividends declared and paid during the year. The $ 260,000 credit entry represents the net income shown in the income statement All investing and financing activities were cash transactions. Cash and cash equivalents amounted to $244,000 at the beginning of the year and to $164,000 at the end of the year. Prepare a partial statement of cash flows including the operating activities, investing activities and financing section of the statement.

Question Description The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2013 Revenue: Net sales………………………………………..$3,200,000 Interest income………………………………….. . 45,000 Gain on sale of marketable securities…….………...34,000 Total revenue…………………………………..$3,279,000 Costs and expenses: Cost of goods sold…………………………………………... $1,620,000 Operating expenses (including depreciation of $150,000)….1, 240,000 Interest expense…………………………………………….…...42,000 Income taxes…………………………………………….……....100,000 Loss on sale of plant Assets.....................................................…...12,000 Total Costs and expenses…………………………..………. $3,014,000 Net income………………………………………….…………. $260,000 Changes in the Company’s balance sheet accounts over the year are summarized as follows: Accounts receivable increased by $60,000 Accrued interest receivable decreased by $2,000 Inventory decreased by $60,000, and Account payable decreased by $16,000 Short term prepayments of operating expenses increased by $6,000 and accrued liabilities for operating expenses decreased by $8,000 The liability for accrued interest payable increased by $4,000 during the year. The liability for accrued income taxes payable decreased by $14,000 during the year. The following schedule summarizes the total debit and credit entries during the year: Selected account balances: Debit entries Credit entries Marketable securities $60,000 $38,000 Notes receivable 44,000 28,000 Plant assets 500,000 36,000 Notes payable 92,000 82,000 Capital Stock 20,000 Additional Paid-in capital 160,000 Retained earnings 120,000 260,000 The $ 36,000 in credit entries to the plant assets account is net of any debits to Accumulated depreciation when plant assets were retired. Thus the $36,000 in credit entries represents the book value of all plant assets sold or retired during the year The $ 120,000 debit to the retained earnings represents the dividends declared and paid during the year. The $ 260,000 credit entry represents the net income shown in the income statement All investing and financing activities were cash transactions. Cash and cash equivalents amounted to $244,000 at the beginning of the year and to $164,000 at the end of the year. Prepare a partial statement of cash flows including the operating activities, investing activities and financing section of the statement.

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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Question Description

The following income statement and selected balance sheet account data are available for Treece, Inc., at December 31, 2013

Revenue:

Net sales………………………………………..$3,200,000

Interest income………………………………….. . 45,000

Gain on sale of marketable securities…….………...34,000

Total revenue…………………………………..$3,279,000

Costs and expenses:

Cost of goods sold…………………………………………... $1,620,000

Operating expenses (including depreciation of $150,000)….1, 240,000

Interest expense…………………………………………….…...42,000

Income taxes…………………………………………….……....100,000

Loss on sale of plant Assets.....................................................…...12,000

Total Costs and expenses…………………………..………. $3,014,000

Net income………………………………………….…………. $260,000

Changes in the Company’s balance sheet accounts over the year are summarized as follows:

Accounts receivable increased by $60,000
Accrued interest receivable decreased by $2,000
Inventory decreased by $60,000, and Account payable decreased by $16,000
Short term prepayments of operating expenses increased by $6,000 and accrued liabilities for operating expenses decreased by $8,000
The liability for accrued interest payable increased by $4,000 during the year.
The liability for accrued income taxes payable decreased by $14,000 during the year.
The following schedule summarizes the total debit and credit entries during the year:

Selected account balances:

	Debit entries	Credit entries
Marketable securities	$60,000	$38,000
Notes receivable	44,000	28,000
Plant assets	500,000	36,000
Notes payable	92,000	82,000
Capital Stock		20,000
Additional Paid-in capital		160,000
Retained earnings	120,000	260,000

The $ 36,000 in credit entries to the plant assets account is net of any debits to Accumulated depreciation when plant assets were retired. Thus the $36,000 in credit entries represents the book value of all plant assets sold or retired during the year
The $ 120,000 debit to the retained earnings represents the dividends declared and paid during the year. The $ 260,000 credit entry represents the net income shown in the income statement
All investing and financing activities were cash transactions.
Cash and cash equivalents amounted to $244,000 at the beginning of the year and to $164,000 at the end of the year.

Prepare a partial statement of cash flows including the operating activities, investing activities and financing section of the statement.

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