SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets $ 26,300 Current Assets: $ 15,400 Cash 26,400 25,100 Accounts Receivable 79,300 91,300 Merchandise Inventory Long-term Assets: 34,900 14,000 Land 115,790 108,330 Plant Assets (19,890) (18,630) Accumulated Depreciation-Plant Assets $ 262,800 $ 235,500 Total Assets Liabilities Current Liabilities: $ 35,600 $ 30,100 Accounts Payable 28,900 30,800 Accrued Liabilities Long-term Liabilities: 78,000 105,000 Notes Payable 142,500 165,900 Total Liabilities Stockholders' Equity 88,200 64,800 Common Stock, no par 32,100 4,800 Retained Earnings 120,300 69,600 Total Stockholders' Equity $ 262,800 $ 235,500 Total Liabilities and Stockholders' Equity 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 $ 26,300 Current Assets: $ 15,400 Cash 26,400 25,100 Accounts Receivable 79,300 91,300 Merchandise Inventory Long-term Assets: 34,900 14,000 Land 115,790 108,330 Plant Assets (19,890) (18,630) Accumulated Depreciation-Plant Assets $ 262,800 $ 235,500 Total Assets Liabilities Current Liabilities: $ 35,600 $ 30,100 Accounts Payable 28,900 30,800 Accrued Liabilities Long-term Liabilities: 78,000 105,000 Notes Payable 142,500 165,900 Total Liabilities Stockholders' Equity 88,200 64,800 Common Stock, no par 32,100 4,800 Retained Earnings 120,300 69,600 Total Stockholders' Equity $ 262,800 $ 235,500 Total Liabilities and Stockholders' Equity 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:SWEET VALLEY, INC.
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
$ 26,300
Current Assets:
$ 15,400
Cash
26,400
25,100
Accounts Receivable
79,300
91,300
Merchandise Inventory
Long-term Assets:
34,900
14,000
Land
115,790
108,330
Plant Assets
(19,890)
(18,630)
Accumulated Depreciation-Plant Assets
$ 262,800
$ 235,500
Total Assets
Liabilities
Current Liabilities:
$ 35,600
$ 30,100
Accounts Payable
28,900
30,800
Accrued Liabilities
Long-term Liabilities:
78,000
105,000
Notes Payable
142,500
165,900
Total Liabilities
Stockholders' Equity
88,200
64,800
Common Stock, no par
32,100
4,800
Retained Earnings
120,300
69,600
Total Stockholders' Equity
$ 262,800
$ 235,500
Total Liabilities and Stockholders' Equity
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?
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