The following financial statements and information are available for Blythe Industries Incorporated. Blythe Industries, Incorporated Balance Sheets As of December 31 Year 3Year 2 Assets Cash $160,200 $120,600 Accounts receivable $103,200 $85,000 Inventory $186,400 $171,800 Marketable securities (available for sale) $284,000 $220,000 Equipment $650,000 $490,000 Accumulated depreciation $(310,000) $(240,000) Land $80,000 $120,000 Total assets $1,153,800 $967,400 Liabilities and equity Liabilities Accounts payable (inventory) $36,400 $66,200 Notes payable - Long-term $230,000 $250,000 Bonds payable $200,000 $100,000 Total liabilities $466,400 $416,200 Stockholders' equity Common stock, no par $240,000 $200,000 Preferred stock, $50 par $110,000 $100,000 Paid-in capital in excess of par - Preferred stock $34,400 $26,800 Total paid-in capital $384,400 $326,800 Retained earnings $333,000 $264,400 Less: Treasury stock $(30,000) $(40,000) Total stockholders' equity $687,400 $551,200 Total liabilities and stockholders' equity $1,153,800 $967,400 Blythe Industries, Incorporated Income Statement For the Year Ended December 31, Year 3 Sales revenue $1,050,000 Cost of goods sold $(766,500) Gross profit $283,500 Operating expenses Supplies expense $20,400 Salaries expense $92,000 Depreciation expense $90,000 Total operating expenses $(202,400) Operating income $81,100 Nonoperating items Interest expense $(16,000) Gain from the sale of marketable securities $30,000 Gain from the sale of land and equipment $12,000 Net income $107,100 Additional information 1. Sold land that cost $40,000 for $44,000. $40,000 $44,000 2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000. $30,000 $20,000 $18,000 3. Purchased new equipment for $190,000. $190,000 4. Sold marketable securities that were classified as available-for-sale and that cost $40,000 for $70,000. $40,000 $70,000 5. Purchased new marketable securities, classified as available-for-sale, for $104,000. $104,000 6. Paid $20,000 on the principal of the long-term note. $20,000 7. Paid off a $100,000 bond issue and issued new bonds for $200,000. $100,000 $200,000 8. Sold 100 shares of treasury stock at its cost.100 9. Issued new common stock. 10. Issued some new $50 par preferred stock. $50 11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.) Required a. Complete the statement of cash flows using the direct method. b. What is the cost per share of the treasury stock? c. What was the issue price per share of the preferred stock? d. What was the book value of the equipment sold? Note: Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values. Blythe Industries IncorporatedStatement of Cash FlowsFor the Year Ended December 31, Year 3Cash flows from operating activities: Sales Interest Operating expenses Net cash inflow from operating activities Cash flows from investing activities: Cash flows from financing activities: Ending cash balance b. The cost per share of the treasury stock is c. The issue price per share of the preferred stock was d. The book value of the equipment sold was AssetsA12 The following financial statements and information are available for Blythe Industries Incorporated.3456789101112131415Land16 Total assets17 Liabilities and equity18 Liabilities1920212223242526272829 Less: Treasury stock30 Total stockholders' equity31 Total liabilities and stockholders' equity32CashAccounts receivableInventoryMarketable securities (available for sale)EquipmentAccumulated depreciationTotal liabilitiesStockholders' equityBlythe Industries, IncorporatedBalance SheetsAs of December 31Accounts payable (inventory)Notes payable - Long-termBonds payableCommon stock, no parPreferred stock, $50 parPaid-in capital in excess of par - Preferred stockTotal paid-in capitalRetained earnings$$$$$$$$B$$$$Year 3160,200 $103,200 $186,400 $284,000 $650,000 $(310,000) $80,000 $1,153,800 $36,400 $230,000 $200,000 $466,400 $$$$34,400 $$384,400 $$333,000 $$(30,000) $$687,400 $$ 1,153,800 $с240,000 $110,000 $Year 2120,60085,000171,800220,000490,000(240,000)120,000967,40066,200250,000100,000416,200200,000100,00026,800D326,800264,400(40,000)551,200967,400EFGHIJK G143233343536 Sales revenue37 Cost of goods sold38 Gross profit39 Operating expensesê Đ Đ ô có40 Supplies expenseSalaries expense41x ✓ fxA42 Depreciation expense43 Total operating expensesBlythe Industries, IncorporatedIncome StatementFor the Year Ended December 31, Year 344 Operating income45 Nonoperating items46Interest expenseGain from the sale of marketable securitiesGain from the sale of land and equipment474849 Net income5051 Additional information52ԴB$$20,40092,00090,0001. Sold land that cost $40,000 for $44,000.2. Sold equipment that cost $30,000 and had accumulated depreciation53 of $20,000 for $18,000.54 3. Purchased new equipment for $190,000.4. Sold marketable securities that were classified as available-for-sale55 and that cost $40,000 for $70,000.5. Purchased new marketable securities, classified as available-for-sale,56 for $104,000.57 6. Paid $20,000 on the principal of the long-term note.58 7. Paid off a $100,000 bond issue and issued new bonds for $200,000.59 8. Sold 100 shares of treasury stock at its cost.60 9. Issued new common stock.61 10. Issued some new $50 par preferred stock.11. Paid dividends. (Note: The only transactions to affect retained62 earnings were net income and dividends.)63$$$$$$$$$$$$$SSS$$$$1,050,000(766,500)283,500(202,400)81,100(16,000)30,00012,000107,10040,000 $D44,00030,000 $ 20,000 $190,00040,000 $70,00050104,00020,000100,000 $200,000100E18,000FG

Cash Flow Statement - Direct Method The report of net cash inflows direct method does not convert…

The following financial statements and information are available for Blythe Industries Incorporated. Blythe Industries, Incorporated Balance Sheets As of December 31 Year 3 Year 2 Assets Cash $160,200 $120,600 Accounts receivable $103,200 $85,000 Inventory $186,400 $171,800 Marketable securities (available for sale) $284,000 $220,000 Equipment $650,000 $490,000 Accumulated depreciation $(310,000) $(240,000) Land $80,000 $120,000 Total assets $1,153,800 $967,400 Liabilities and equity Liabilities Accounts payable (inventory) $36,400 $66,200 Notes payable - Long-term $230,000 $250,000 Bonds payable $200,000 $100,000 Total liabilities $466,400 $416,200 Stockholders' equity Common stock, no par $240,000 $200,000 Preferred stock, $50 par $110,000 $100,000 Paid-in capital in excess of par - Preferred stock $34,400 $26,800 Total paid-in capital $384,400 $326,800 Retained earnings $333,000 $264,400 Less: Treasury stock $(30,000) $(40,000) Total stockholders' equity $687,400 $551,200 Total liabilities and stockholders' equity $1,153,800 $967,400 Blythe Industries, Incorporated Income Statement For the Year Ended December 31, Year 3 Sales revenue $1,050,000 Cost of goods sold $(766,500) Gross profit $283,500 Operating expenses Supplies expense $20,400 Salaries expense $92,000 Depreciation expense $90,000 Total operating expenses $(202,400) Operating income $81,100 Nonoperating items Interest expense $(16,000) Gain from the sale of marketable securities $30,000 Gain from the sale of land and equipment $12,000 Net income $107,100 Additional information 1. Sold land that cost $40,000 for $44,000. $40,000 $44,000 2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000. $30,000 $20,000 $18,000 3. Purchased new equipment for $190,000. $190,000 4. Sold marketable securities that were classified as available-for-sale and that cost $40,000 for $70,000. $40,000 $70,000 5. Purchased new marketable securities, classified as available-for-sale, for $104,000. $104,000 6. Paid $20,000 on the principal of the long-term note. $20,000 7. Paid off a $100,000 bond issue and issued new bonds for $200,000. $100,000 $200,000 8. Sold 100 shares of treasury stock at its cost. 100 9. Issued new common stock. 10. Issued some new $50 par preferred stock. $50 11. Paid dividends. (Note: The onl

The following financial statements and information are available for Blythe Industries Incorporated. Blythe Industries, Incorporated Balance Sheets As of December 31 Year 3 Year 2 Assets Cash $160,200 $120,600 Accounts receivable $103,200 $85,000 Inventory $186,400 $171,800 Marketable securities (available for sale) $284,000 $220,000 Equipment $650,000 $490,000 Accumulated depreciation $(310,000) $(240,000) Land $80,000 $120,000 Total assets $1,153,800 $967,400 Liabilities and equity Liabilities Accounts payable (inventory) $36,400 $66,200 Notes payable - Long-term $230,000 $250,000 Bonds payable $200,000 $100,000 Total liabilities $466,400 $416,200 Stockholders' equity Common stock, no par $240,000 $200,000 Preferred stock, $50 par $110,000 $100,000 Paid-in capital in excess of par - Preferred stock $34,400 $26,800 Total paid-in capital $384,400 $326,800 Retained earnings $333,000 $264,400 Less: Treasury stock $(30,000) $(40,000) Total stockholders' equity $687,400 $551,200 Total liabilities and stockholders' equity $1,153,800 $967,400 Blythe Industries, Incorporated Income Statement For the Year Ended December 31, Year 3 Sales revenue $1,050,000 Cost of goods sold $(766,500) Gross profit $283,500 Operating expenses Supplies expense $20,400 Salaries expense $92,000 Depreciation expense $90,000 Total operating expenses $(202,400) Operating income $81,100 Nonoperating items Interest expense $(16,000) Gain from the sale of marketable securities $30,000 Gain from the sale of land and equipment $12,000 Net income $107,100 Additional information 1. Sold land that cost $40,000 for $44,000. $40,000 $44,000 2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000. $30,000 $20,000 $18,000 3. Purchased new equipment for $190,000. $190,000 4. Sold marketable securities that were classified as available-for-sale and that cost $40,000 for $70,000. $40,000 $70,000 5. Purchased new marketable securities, classified as available-for-sale, for $104,000. $104,000 6. Paid $20,000 on the principal of the long-term note. $20,000 7. Paid off a $100,000 bond issue and issued new bonds for $200,000. $100,000 $200,000 8. Sold 100 shares of treasury stock at its cost. 100 9. Issued new common stock. 10. Issued some new $50 par preferred stock. $50 11. Paid dividends. (Note: The onl

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

The following financial statements and information are available for Blythe Industries Incorporated.

Blythe Industries, Incorporated
Balance Sheets
As of December 31
	Year 3	Year 2
Assets
Cash	$160,200	$120,600
Accounts receivable	$103,200	$85,000
Inventory	$186,400	$171,800
Marketable securities (available for sale)	$284,000	$220,000
Equipment	$650,000	$490,000
Accumulated depreciation	$(310,000)	$(240,000)
Land	$80,000	$120,000
Total assets	$1,153,800	$967,400
Liabilities and equity
Liabilities
Accounts payable (inventory)	$36,400	$66,200
Notes payable - Long-term	$230,000	$250,000
Bonds payable	$200,000	$100,000
Total liabilities	$466,400	$416,200
Stockholders' equity
Common stock, no par	$240,000	$200,000
Preferred stock, $50 par	$110,000	$100,000
Paid-in capital in excess of par - Preferred stock	$34,400	$26,800
Total paid-in capital	$384,400	$326,800
Retained earnings	$333,000	$264,400
Less: Treasury stock	$(30,000)	$(40,000)
Total stockholders' equity	$687,400	$551,200
Total liabilities and stockholders' equity	$1,153,800	$967,400

Blythe Industries, Incorporated
Income Statement
For the Year Ended December 31, Year 3
Sales revenue		$1,050,000
Cost of goods sold		$(766,500)
Gross profit		$283,500
Operating expenses
Supplies expense	$20,400
Salaries expense	$92,000
Depreciation expense	$90,000
Total operating expenses		$(202,400)
Operating income		$81,100
Nonoperating items
Interest expense		$(16,000)
Gain from the sale of marketable securities		$30,000
Gain from the sale of land and equipment		$12,000
Net income		$107,100

Additional information
1. Sold land that cost $40,000 for $44,000.	$40,000	$44,000
2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000.	$30,000	$20,000	$18,000
3. Purchased new equipment for $190,000.	$190,000
4. Sold marketable securities that were classified as available-for-sale and that cost $40,000 for $70,000.	$40,000	$70,000
5. Purchased new marketable securities, classified as available-for-sale, for $104,000.	$104,000
6. Paid $20,000 on the principal of the long-term note.	$20,000
7. Paid off a $100,000 bond issue and issued new bonds for $200,000.	$100,000	$200,000
8. Sold 100 shares of treasury stock at its cost.	100
9. Issued new common stock.
10. Issued some new $50 par preferred stock.	$50
11. Paid dividends. (Note: The only transactions to affect retained earnings were net income and dividends.)

Required
a. Complete the statement of cash flows using the direct method.
b. What is the cost per share of the treasury stock?
c. What was the issue price per share of the preferred stock?
d. What was the book value of the equipment sold?

Note: Negative amounts or amounts to be deducted should be input and displayed as negative values. All other answers should be input and displayed as positive values.

Blythe Industries Incorporated
Statement of Cash Flows
For the Year Ended December 31, Year 3
Cash flows from operating activities:
Sales
Interest
Operating expenses

Net cash inflow from operating activities
Cash flows from investing activities:






Cash flows from financing activities:










Ending cash balance

b. The cost per share of the treasury stock is
c. The issue price per share of the preferred stock was
d. The book value of the equipment sold was

Assets
A
1
2 The following financial statements and information are available for Blythe Industries Incorporated.
3
4
5
6
7
8
9
10
11
12
13
14
15
Land
16 Total assets
17 Liabilities and equity
18 Liabilities
19
20
21
22
23
24
25
26
27
28
29 Less: Treasury stock
30 Total stockholders' equity
31 Total liabilities and stockholders' equity
32
Cash
Accounts receivable
Inventory
Marketable securities (available for sale)
Equipment
Accumulated depreciation
Total liabilities
Stockholders' equity
Blythe Industries, Incorporated
Balance Sheets
As of December 31
Accounts payable (inventory)
Notes payable - Long-term
Bonds payable
Common stock, no par
Preferred stock, $50 par
Paid-in capital in excess of par - Preferred stock
Total paid-in capital
Retained earnings
$
$
$
$
$
$
$
$
B
$
$
$
$
Year 3
160,200 $
103,200 $
186,400 $
284,000 $
650,000 $
(310,000) $
80,000 $
1,153,800 $
36,400 $
230,000 $
200,000 $
466,400 $
$
$
$
34,400 $
$
384,400 $
$
333,000 $
$
(30,000) $
$
687,400 $
$ 1,153,800 $
с
240,000 $
110,000 $
Year 2
120,600
85,000
171,800
220,000
490,000
(240,000)
120,000
967,400
66,200
250,000
100,000
416,200
200,000
100,000
26,800
D
326,800
264,400
(40,000)
551,200
967,400
E
F
G
H
I
J
K

G14
32
33
34
35
36 Sales revenue
37 Cost of goods sold
38 Gross profit
39 Operating expenses
ê Đ Đ ô có
40 Supplies expense
Salaries expense
41
x ✓ fx
A
42 Depreciation expense
43 Total operating expenses
Blythe Industries, Incorporated
Income Statement
For the Year Ended December 31, Year 3
44 Operating income
45 Nonoperating items
46
Interest expense
Gain from the sale of marketable securities
Gain from the sale of land and equipment
47
48
49 Net income
50
51 Additional information
52
Դ
B
$
$
20,400
92,000
90,000
1. Sold land that cost $40,000 for $44,000.
2. Sold equipment that cost $30,000 and had accumulated depreciation
53 of $20,000 for $18,000.
54 3. Purchased new equipment for $190,000.
4. Sold marketable securities that were classified as available-for-sale
55 and that cost $40,000 for $70,000.
5. Purchased new marketable securities, classified as available-for-sale,
56 for $104,000.
57 6. Paid $20,000 on the principal of the long-term note.
58 7. Paid off a $100,000 bond issue and issued new bonds for $200,000.
59 8. Sold 100 shares of treasury stock at its cost.
60 9. Issued new common stock.
61 10. Issued some new $50 par preferred stock.
11. Paid dividends. (Note: The only transactions to affect retained
62 earnings were net income and dividends.)
63
$
$
$
$
$
$
$
$
$
$
$
$
$
SSS
$
$
$
$
1,050,000
(766,500)
283,500
(202,400)
81,100
(16,000)
30,000
12,000
107,100
40,000 $
D
44,000
30,000 $ 20,000 $
190,000
40,000 $70,000
50
104,000
20,000
100,000 $200,000
100
E
18,000
F
G

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