The comparative balance sheet of Canace Products Inc. for December 31, 2016 and
ID: 2465041 • Letter: T
Question
The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is shown as follows: 1 Dec. 31, 2016 Dec. 31, 2015 2 Assets 3 Cash $643,400.00 $679,400.00 4 Accounts receivable (net) 566,800.00 547,400.00 5 Inventories 1,011,000.00 982,800.00 6 Investments 0.00 240,000.00 7 Land 520,000.00 0.00 8 Equipment 880,000.00 680,000.00 9 Accumulated depreciation-equipment (244,400.00) (200,400.00) 10 Total assets $3,376,800.00 $2,929,200.00 11 Liabilities and Stockholders’ Equity 12 Accounts payable (merchandise creditors) $771,800.00 $748,400.00 13 Accrued expenses payable (operating expenses) 63,400.00 70,800.00 14 Dividends payable 8,800.00 6,400.00 15 Common stock, $2 par 56,000.00 32,000.00 16 Paid-in capital: Excess of issue price over par—common stock 408,000.00 192,000.00 17 Retained earnings 2,068,800.00 1,879,600.00 18 Total liabilities and stockholders’ equity $3,376,800.00 $2,929,200.00 The income statement for the year ended December 31, 2016, is as follows: 1 Sales $5,980,000.00 2 Cost of merchandise sold 2,452,000.00 3 Gross profit $3,528,000.00 4 Operating expenses: 5 Depreciation expense $44,000.00 6 Other operating expenses 3,100,000.00 7 Total operating expenses 3,144,000.00 8 Operating income $384,000.00 9 Other expense: 10 Loss on sale of investments (64,000.00) 11 Income before income tax $320,000.00 12 Income tax expense 102,800.00 13 Net income $217,200.00 Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows: A. Equipment and land were acquired for cash. B. There were no disposals of equipment during the year. C. The investments were sold for $176,000 cash D. The common stock was issued for cash. E. There was a $28,000 debit to Retained Earnings for cash dividends declared. Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign only to indicate the net cash outflows for each section. “Deduct”, “Less” or colons (:) will automatically appear if required.
The comparative balance sheet of Canace Products Inc. for December 31, 2016 and 2015, is shown as follows:
Question not attempted.
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$643,400.00
$679,400.00
4
Accounts receivable (net)
566,800.00
547,400.00
5
Inventories
1,011,000.00
982,800.00
6
Investments
0.00
240,000.00
7
Land
520,000.00
0.00
8
Equipment
880,000.00
680,000.00
9
Accumulated depreciation-equipment
(244,400.00)
(200,400.00)
10
Total assets
$3,376,800.00
$2,929,200.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$771,800.00
$748,400.00
13
Accrued expenses payable (operating expenses)
63,400.00
70,800.00
14
Dividends payable
8,800.00
6,400.00
15
Common stock, $2 par
56,000.00
32,000.00
16
Paid-in capital: Excess of issue price over par—common stock
408,000.00
192,000.00
17
Retained earnings
2,068,800.00
1,879,600.00
18
Total liabilities and stockholders’ equity
$3,376,800.00
$2,929,200.00
The income statement for the year ended December 31, 2016, is as follows:
Question not attempted.
1
Sales
$5,980,000.00
2
Cost of merchandise sold
2,452,000.00
3
Gross profit
$3,528,000.00
4
Operating expenses:
5
Depreciation expense
$44,000.00
6
Other operating expenses
3,100,000.00
7
Total operating expenses
3,144,000.00
8
Operating income
$384,000.00
9
Other expense:
10
Loss on sale of investments
(64,000.00)
11
Income before income tax
$320,000.00
12
Income tax expense
102,800.00
13
Net income
$217,200.00
Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign only to indicate the net cash outflows for each section. “Deduct”, “Less” or colons (:) will automatically appear if required.
In CengageNOW, a Label is a text entry that does not have an amount associated with it.
In CengageNOW, an Amount Description is a text entry other than an Account that has an amount associated with it.
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$643,400.00
$679,400.00
4
Accounts receivable (net)
566,800.00
547,400.00
5
Inventories
1,011,000.00
982,800.00
6
Investments
0.00
240,000.00
7
Land
520,000.00
0.00
8
Equipment
880,000.00
680,000.00
9
Accumulated depreciation-equipment
(244,400.00)
(200,400.00)
10
Total assets
$3,376,800.00
$2,929,200.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$771,800.00
$748,400.00
13
Accrued expenses payable (operating expenses)
63,400.00
70,800.00
14
Dividends payable
8,800.00
6,400.00
15
Common stock, $2 par
56,000.00
32,000.00
16
Paid-in capital: Excess of issue price over par—common stock
408,000.00
192,000.00
17
Retained earnings
2,068,800.00
1,879,600.00
18
Total liabilities and stockholders’ equity
$3,376,800.00
$2,929,200.00
Explanation / Answer
Use this link to get answer
https://financeaccountsonlinetutoring-canaceproductsinc.googledrives/