Project #12598 - balance sheet

Additional information added in module 3:

·         One client had indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase.

·         The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2012 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.

Additional information for module 4:

·         The company made a secondary offering of stock and raised an additional $150,000.

·         The company had already paid $15,000 in dividends before deciding on the offering.

·         The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the downpayment is $40,000 and a note to the bank covers the rest.

Nybrostrand Company

31-Dec-13

Trial Balance (accounts in alphabetical order)

 

Debit

Credit

Accounts payable

 

$ 78,000

Accounts receivable

$ 36,500

 

Cash

30,000

 

Common stock

 

10,000

Depreciation expense

24,350

 

Cost of goods sold

307,000

 

Equipment (net of depreciation)

415,000

 

Insurance

1,400

 

Inventory

34,000

 

Long-term debt

 

127,000

Marketing

4,500

 

Paid-in capital

 

50,000

Property taxes

16,900

 

Rent

28,000

 

Retained earnings

 

?

Revenues

 

586,000

Salaries

50,000

 

Utilities

6,700

 
   

 

Total

954,350

851,000

     

Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in module 3 and also consider the effect of paying the dividend. You do not need to include the income statement.

Based on additional information added in modules 3 and 4, please use the information below to make a statement of cash flows.

·         The beginning cash balance is $30,000.

·         Use the Net Income from Module 2.

·         Use depreciation expense of Module 2.

·         During the year 13, Inventory increases by $42,500.

·         During the year 13, Land increases by $400,000.

·         During the year 13, Long-Term Debts increase by $360,000.

·         During the year 13, the company made a secondary offering of stock and raised an additional $150,000.

·         During the year 13, the company had paid $15,000 in dividends.

Using the Indirect Method, prepare a statement of cash flows for the company in good format and compare two financial statements between the income statement and statement of cash flows. You do not need to include the income statement or balance sheet.

Subject Mathematics
Due By (Pacific Time) 09/17/2013 02:00 pm
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