Homework Help is Here – Start Your Trial Now!
Business
Accounting
SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500

SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Preparing the statement of cash flows—indirect method with non-cash transactions

The 2018 income statement and comparative balance sheet of Sweet Valley Inc follow:

Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $13,240. Plant asset was acquired for cash.

Requirements

  1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method.
  2. How will what you learned in this problem help you evaluate an investment?
SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500
Transcribed Image Text:SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Property, Plant and Equipment
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS