The comparative balance sheet for the ZYX Company at December 31, 2019 and 2018 is as follows:Assets:12/31/1912/31/18Cash$146,600$179,800Accounts Receivable224,600242,000Merchandise Inventory321,600299,200Prepaid Expenses13,4009,600Equipment655,000537,000Accumulated depreciation-equipmentTotal AssetsLiabilities and Stockholders' Equity(170,800)(132,200)Accounts payable (merchandise creditors)$250,200$237,600Mortgage note payable 336,000Common Stock, $10 par74,00024,000Paid in Capital-common stock470,000320,000Retained Earnings396,200217,800Total Liabiiities and Stockholders' EquityAdditionai data obtained from an examination of the accounts in the ledger for 2019 are as follows:Net Income, $332,000Depreciation reported on the income statement, $83,400Equipment was purchased at a cost of &162,800 and fully depreciated equipment costing $44,800 was discarded.The mortgage note payable was not due until 2021 but the terms permitted earlier payment without penalty10,000 shares of common stock were issued at $20 for cashCash dividends declared and paid, $153,600Instructions: Prepare a statement of cash flows using the indirect method.

The cash flow statement is an essential part of the financial statements of the organization. It is…

Answered: The comparative balance sheet for the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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The comparative balance sheet of Gus Company at December 31, 2024 and 2023 appears below:Assets:12/31/202412/31/2023Cash$ 53,000 $ 120,000 Accounts receivable (net)37,000 48,000 Inventories108,500 100,000 Equipment573,200 450,000 Accumulated depreciation-equipment (142,000) (176,000) $629,700 $542,000 Liabilities & Stockholders Equity: Accounts payable$ 62,500 $ 43,800 Bonds payable, due June 20240 100,000 Common stock, $10 par335,000 285,000 Paid-in capital in excess of par - Common stock74,000 55,000 Retained earnings 158,200 58,200 $629,700 $542,000 The income statement for the year ended December 31, 2024 appears below:Sales $625,700 Cost of merchandise sold 340,000 Gross profit 285,700 Operating expenses (includes $26,000 depreciation expense) 94,000 Operating Income 191,700 Interest expense 6,000Income before income tax 185,700 Income tax 60,700 Net income $125,000 Also in 2024, fully depreciated equipment costing $60,000 was scrapped at no salvage…
The comparative balance sheet of Best Buy for January 31, 2020 and 2019, is shown as follows (values are in millions): Best Buy Comparative Balance Sheet For January 31, 2020 and 2019 $In militans Jan 31, 2020 Jan 31, 2019 Assets Cash Accounts recelvable Inventory Investments Land Equlpment Accumulated depreciation - Equipment Total assets 2,229 S 1,980 1,149 5,174 $ 1,015 5,409 500 650 S 637 9,228 S (6,900) S 9,200 (6,690) 11,530 S 12,051 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable (operating expenses) Dividends payable Common stock 5,288 906 S 5,257 982 564 564 26 27 Pald in capital: Excess of Issue price over par - common stock Retalned earnings Total liabilities and stockholders' equlty 4,745 S 11,530 $ 5,221 12,051 Additional data obtained from an examination of the accounts in the ledger for 2020 are as follows: a. The investments were sold for $875 million cash. b. Equipment and land were acquired for cash. c. There were no disposals of…
The balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 138,880 $ 118,000 Accounts receivable 74,000 90,000 Inventory 93,000 78,000 Investments 3,800 1,800 Long-term assets: Land 460,000 460,000 Equipment 770,000 650,000 Less: Accumulated depreciation (408,000 ) (248,000 ) Total assets $ 1,131,680 $ 1,149,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 97,600 $ 83,000 Interest payable 5,500 11,800 Income tax payable 7,500 4,800 Long-term liabilities: Notes payable 100,000 200,000 Stockholders' equity: Common stock…
The Comparative Balance Sheet of XYZ Inc. for December 31, 2019 and 2018 is shown as follows: 12/31/19 12/31/18 Assets Cash $625,760 $585,920 Accounts Receivable 227,840 208,960 Inventories $641,760 $617,120 Investments 0 240,000 Land…
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 146,750 $ 159,000 Accounts receivable 76,000 89,500 Inventory 90,000 75,500 Prepaid rent 3,000 1,500 Long-term assets: Land 455,000 455,000 Equipment 750,000 645,000 Accumulated depreciation (415,000 ) (258,000 ) Total assets $ 1,105,750 $ 1,167,500 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 94,000 $ 80,500 Interest payable 6,750 13,500 Income tax payable 7,000 4,500 Long-term liabilities: Notes payable 112,500 225,000 Stockholders' equity: Common stock…
the balance sheets for Plasma Screens Corporation and additional information are provided below. PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 242,000 $ 130,000 Accounts receivable 98,000 102,000 Inventory 105,000 90,000 Investments 5,000 3,000 Long-term assets: Land 580,000 580,000 Equipment 890,000 770,000 Less: Accumulated depreciation (528,000 ) (368,000 ) Total assets $ 1,392,000 $ 1,307,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 109,000 $ 95,000 Interest payable 7,000 13,000 Income tax payable 9,000 6,000 Long-term liabilities: Notes payable 110,000 220,000 Stockholders' equity: Common stock…
Make the horizontal analysis for 2019. Make the vertical analysis for 2018 and 2019.
The comparative balance sheet for the ZYX Company on December 31, 2019 and 2018 is as follows: 12/31/19 12/31/18 Assets: Cash $146,600 $179,800 Accounts Receivable 224,600 242,000 Merchandise Inventory…
What is the total asset turnover of Nezuko Inc
Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31): Sales revenue Cost of goods sold Administrative expense Selling expense Interest revenue Interest expense Loss on sale of assets of discontinued component 2024 2023 $5,250,000 $4,350,000 2,170,000 3,030,000 970,000 845,000 530,000 472,000 167,000 157,000 234,000 Sales revenue Cost of goods sold Administrative expense Selling expense Operating income before taxes On July 1, 2024, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2024, for $116,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows: 234,000 116,000 1/1/2024-9/30/2024 $ 570,000 (375,000) (67,000) (37,000) $ 91,000 2023 $ 670,000 (422,000) (57,000) (37,000) $ 154,000 In addition to the…
Krause Industries’ balance sheet at December 31, 2019, is presented below. KRAUSE INDUSTRIESBalance SheetDecember 31, 2019 Assets Current Assets Cash $7,500 Accounts receivable 73,500 Finished goods inventory (1,500 units) 26,320 Total current assets 107,320 Property, Plant, and Equipment Equipment $40,010 Less: Accumulated depreciation 10,200 29,810 Total assets $137,130 Liabilities and Stockholders' Equity Liabilities Notes payable $27,820 Accounts payable 45,040 Total liabilities 72,860 Stockholders' Equity Common stock $38,930 Retained earnings 25,340 Total stockholders' equity 64,270 Total liabilities and stockholders'…
Krause Industries’ balance sheet at December 31, 2019, is presented below. KRAUSE INDUSTRIESBalance SheetDecember 31, 2019 Assets Current Assets Cash $7,500 Accounts receivable 73,500 Finished goods inventory (1,500 units) 26,320 Total current assets 107,320 Property, Plant, and Equipment Equipment $40,010 Less: Accumulated depreciation 10,200 29,810 Total assets $137,130 Liabilities and Stockholders' Equity Liabilities Notes payable $27,820 Accounts payable 45,040 Total liabilities 72,860 Stockholders' Equity Common stock $38,930 Retained earnings 25,340 Total stockholders' equity 64,270 Total liabilities and stockholders'…

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Assets:	12/31/19	12/31/18
Cash	$146,600	$179,800
Accounts Receivable	224,600	242,000
Merchandise Inventory	321,600	299,200
Prepaid Expenses	13,400	9,600
Equipment	655,000	537,000
Accumulated depreciation-equipment Total Assets Liabilities and Stockholders' Equity	(170,800)	(132,200)
Accounts payable (merchandise creditors)	$250,200	$237,600
Mortgage note payable		336,000
Common Stock, $10 par	74,000	24,000
Paid in Capital-common stock	470,000	320,000
Retained Earnings	396,200	217,800