The comparative balance sheet of Air Glide Athletic ApparelCo. at December 31, 2
ID: 2445676 • Letter: T
Question
The comparative balance sheet of Air Glide Athletic ApparelCo. at December 31, 2008 and 2007, is as follows. Dec.312008 Dec. 31 2007 Assets cash 45,800 56,200 AccountsReceivable(net) 70,200 75,600 MerchandiseInventory 100,500 93,500 PrepaidExpenses 4,200 3,000 Equipment 204,700 167,800 Accumulateddepreciation-equipment (53,400) (42,300) 372,000 354,800 Liabilitiesand Stockholders equity Accounts Payable(merchandisecreditors) 78,200 74,300 Mortgage notepayable 0 105,000 Common stock, $1par 15,000 10,000 Paid in capital in excess of par comm stock 180,000 100,000 Retainedearnings 98,800 65,500 $372,000 $354,800 Additional data obtaned from the income statement and from anexamination of the acounts ledger for 2008 are as follows. a. Net income 81,300 b. Depreciation reported on the income statement, 26,100 c. Equipment was purchased at a cost of 50,900, and fullydepreciated equipment costing 14,000 was discarded, with nosalvage realized. d. The mortgage note payable was not due intil 2011, but the terms permitted earlier payment without penalty. e. 5,000 shares of common stock were issued at $17 forcash. f. Cash dividends declared and paid, 48,000 Prepare a statement of cash flows, useing the indirect methodof presenting cash flows from operating expenses. The comparative balance sheet of Air Glide Athletic ApparelCo. at December 31, 2008 and 2007, is as follows. Dec.312008 Dec. 31 2007 Assets cash 45,800 56,200 AccountsReceivable(net) 70,200 75,600 MerchandiseInventory 100,500 93,500 PrepaidExpenses 4,200 3,000 Equipment 204,700 167,800 Accumulateddepreciation-equipment (53,400) (42,300) 372,000 354,800 Liabilitiesand Stockholders equity Accounts Payable(merchandisecreditors) 78,200 74,300 Mortgage notepayable 0 105,000 Common stock, $1par 15,000 10,000 Paid in capital in excess of par comm stock 180,000 100,000 Retainedearnings 98,800 65,500 $372,000 $354,800 Additional data obtaned from the income statement and from anexamination of the acounts ledger for 2008 are as follows. a. Net income 81,300 b. Depreciation reported on the income statement, 26,100 c. Equipment was purchased at a cost of 50,900, and fullydepreciated equipment costing 14,000 was discarded, with nosalvage realized. d. The mortgage note payable was not due intil 2011, but the terms permitted earlier payment without penalty. e. 5,000 shares of common stock were issued at $17 forcash. f. Cash dividends declared and paid, 48,000 Prepare a statement of cash flows, useing the indirect methodof presenting cash flows from operating expenses.Explanation / Answer
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