The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $61, 339 28, 418 156, 774 2,395 259, 520 (138, 830) 194, 188 $563, 796 $65, 792 24, 267 253,000 220, 737 $563, 796 $1,495,000 (794,543) 700,457 (20,610) (22,540) (259, 320) Year 1 (258,350) $139,637 $41, 170 29,849 172,459 4,799 287,678 (230,570) 81, 180 $377,539 74,638 20, 809 201,000 81, 100 $377,530 Depreciation expense Rent expense Salaries expense other operating expenses Net income Other Information 1. Purchased land for $113,000. 2. Purchased new equipment for $104,600. 3. Sold old equipment that cost $132.750 with accumulated depreciation of $112,350 for $20,400 cash. 4. Issued common stock for $52,000. Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a m
The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $61, 339 28, 418 156, 774 2,395 259, 520 (138, 830) 194, 188 $563, 796 $65, 792 24, 267 253,000 220, 737 $563, 796 $1,495,000 (794,543) 700,457 (20,610) (22,540) (259, 320) Year 1 (258,350) $139,637 $41, 170 29,849 172,459 4,799 287,678 (230,570) 81, 180 $377,539 74,638 20, 809 201,000 81, 100 $377,530 Depreciation expense Rent expense Salaries expense other operating expenses Net income Other Information 1. Purchased land for $113,000. 2. Purchased new equipment for $104,600. 3. Sold old equipment that cost $132.750 with accumulated depreciation of $112,350 for $20,400 cash. 4. Issued common stock for $52,000. Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a m
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4E
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