The comparative balance sheet of Hinson Enterprises, Inc. at December 31,2013 an
ID: 2367167 • Letter: T
Question
The comparative balance sheet of Hinson Enterprises, Inc. at December 31,2013 and 2012 is as follows
Dec. 31 2013 Dec. 31, 2012
Cash 128275 157325
Accounts Receivable 196525 211750
Merchandise inventory 281400 261800
Prepaid expense 11725 8400
equipment 573125 469875
Accumulated depreciation- Equipment - 149450 -115675
1041600 993475
Accounts Payable (merchandise creditors) 218925 207900
Mortgage notes Payable 0 294000
Common Stocks, $1 par 91000 21000
Paid-in capital in excess of par-common stock 455000 280000
Retained earnings 276675 190575
1041600 993475
A)Net income 220500
B) Depreciation reported on the Income statement 72975
C) Equipment was Purchased at a cost of 142450 and fully decpreciated equipment costing 39200 was discarded with no salvage realized
D) the morgage note payable was not due until 2014, but the terms permitted eailer payment without penalty
E) 7000 shares of common stocks were issued at $35 for cash
F) Cash dividends declared and paid, 134400
Prepare a statement a cash flow using the indirect method of presenting cash flows from operating activites.
Explanation / Answer
how do you start this problem and how do you set up the balance sheet?