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The comparative balance sheet of Middaugh Restaurant Supplies Inc. for December 31, 2013 and 2012, is as follows: Dec. 31, 2013 Dec. 31, 2012 Assets Cash ...... $ 330,960 $ 341,550 Accounts receivable (net) 496,320 457,200 Inventories .... 697,200 681,900 Investments 216,000 Land..... 480,000 Equipment... Accumulated depreciation... 612,000 492,000 (240,750) $2,375,730 (184,200) $2,004,450 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) .. Accrued expenses payable (operating expenses) Dividends payable.... Common stock, $10 par $ 540,000 $ 483,300 33,900 39,600 50,400 45,600 15,000 Paid-in capital in excess of par-common stock. Retained earnings... 108,000 364,500 225,000 1,278,930 $2,375,730 1,195,950 $2,004,450 The income statement for the year ended December 31, is as follows: Sales .... $2,256,000 Cost of merchandise sold Gross profit ... 1,176,000 $1,080,000 Operating expenses: Depreciation expense $ 56,550 Other operating expenses 672,420 Total operating expenses. 728,970 Operating income.. $ 351,030 Other income: Gain on sale of investments... 78,000 Income before income tax ,.. $ 429,030 Income tax expense .. Net income.. 149,550 $ 279,480 The following additional information was taken from the records: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $294,000 cash. d. The cómmon stock was issued for cash. e. There was a $196,500 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows,

The comparative balance sheet of Middaugh Restaurant Supplies Inc. for December 31, 2013 and 2012, is as follows: Dec. 31, 2013 Dec. 31, 2012 Assets Cash ...... $ 330,960 $ 341,550 Accounts receivable (net) 496,320 457,200 Inventories .... 697,200 681,900 Investments 216,000 Land..... 480,000 Equipment... Accumulated depreciation... 612,000 492,000 (240,750) $2,375,730 (184,200) $2,004,450 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) .. Accrued expenses payable (operating expenses) Dividends payable.... Common stock, $10 par $ 540,000 $ 483,300 33,900 39,600 50,400 45,600 15,000 Paid-in capital in excess of par-common stock. Retained earnings... 108,000 364,500 225,000 1,278,930 $2,375,730 1,195,950 $2,004,450 The income statement for the year ended December 31, is as follows: Sales .... $2,256,000 Cost of merchandise sold Gross profit ... 1,176,000 $1,080,000 Operating expenses: Depreciation expense $ 56,550 Other operating expenses 672,420 Total operating expenses. 728,970 Operating income.. $ 351,030 Other income: Gain on sale of investments... 78,000 Income before income tax ,.. $ 429,030 Income tax expense .. Net income.. 149,550 $ 279,480 The following additional information was taken from the records: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $294,000 cash. d. The cómmon stock was issued for cash. e. There was a $196,500 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows,

FINANCIAL ACCOUNTING
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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The comparative balance sheet of Middaugh Restaurant Supplies Inc. for December 31, 2013 and 2012, is as follows: Dec. 31, 2013 Dec. 31, 2012 Assets Cash ...... $ 330,960 $ 341,550 Accounts receivable (net) 496,320 457,200 Inventories .... 697,200 681,900 Investments 216,000 Land..... 480,000 Equipment... Accumulated depreciation... 612,000 492,000 (240,750) $2,375,730 (184,200) $2,004,450 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) .. Accrued expenses payable (operating expenses) Dividends payable.... Common stock, $10 par $ 540,000 $ 483,300 33,900 39,600 50,400 45,600 15,000 Paid-in capital in excess of par-common stock. Retained earnings... 108,000 364,500 225,000 1,278,930 $2,375,730 1,195,950 $2,004,450 The income statement for the year ended December 31, is as follows: Sales .... $2,256,000 Cost of merchandise sold Gross profit ... 1,176,000 $1,080,000 Operating expenses: Depreciation expense $ 56,550 Other operating expenses 672,420 Total operating expenses. 728,970 Operating income.. $ 351,030 Other income: Gain on sale of investments... 78,000 Income before income tax ,.. $ 429,030 Income tax expense .. Net income.. 149,550 $ 279,480 The following additional information was taken from the records: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $294,000 cash. d. The cómmon stock was issued for cash. e. There was a $196,500 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows,
Transcribed Image Text:The comparative balance sheet of Middaugh Restaurant Supplies Inc. for December 31, 2013 and 2012, is as follows: Dec. 31, 2013 Dec. 31, 2012 Assets Cash ...... $ 330,960 $ 341,550 Accounts receivable (net) 496,320 457,200 Inventories .... 697,200 681,900 Investments 216,000 Land..... 480,000 Equipment... Accumulated depreciation... 612,000 492,000 (240,750) $2,375,730 (184,200) $2,004,450 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) .. Accrued expenses payable (operating expenses) Dividends payable.... Common stock, $10 par $ 540,000 $ 483,300 33,900 39,600 50,400 45,600 15,000 Paid-in capital in excess of par-common stock. Retained earnings... 108,000 364,500 225,000 1,278,930 $2,375,730 1,195,950 $2,004,450 The income statement for the year ended December 31, is as follows: Sales .... $2,256,000 Cost of merchandise sold Gross profit ... 1,176,000 $1,080,000 Operating expenses: Depreciation expense $ 56,550 Other operating expenses 672,420 Total operating expenses. 728,970 Operating income.. $ 351,030 Other income: Gain on sale of investments... 78,000 Income before income tax ,.. $ 429,030 Income tax expense .. Net income.. 149,550 $ 279,480 The following additional information was taken from the records: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for $294,000 cash. d. The cómmon stock was issued for cash. e. There was a $196,500 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows,
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