Following are balance sheet data for SMART SET INC.: December 31 2011 2010 Cash
ID: 2471568 • Letter: F
Question
Following are balance sheet data for SMART SET INC.:
December 31
2011
2010
Cash
$ 47,000
$ 26,000
Accounts receivable, net
141,000
134,000
Merchandise inventory
83,000
102,000
Prepaid expenses
9,000
11,000
Plant assets (net of accumulated depreciation)
235,000
230,000
Accounts payable
122,000
127,000
Accrued liabilities payable
40,000
41,000
Capital stock
300,000
300,000
Retained earnings
53,000
35,000
Assume that the depreciation recorded in 2011 was USD 15,000. Compute the cash spent to purchase plant assets, assuming no assets were sold or scrapped in 2011.
December 31
2011
2010
Cash
$ 47,000
$ 26,000
Accounts receivable, net
141,000
134,000
Merchandise inventory
83,000
102,000
Prepaid expenses
9,000
11,000
Plant assets (net of accumulated depreciation)
235,000
230,000
Accounts payable
122,000
127,000
Accrued liabilities payable
40,000
41,000
Capital stock
300,000
300,000
Retained earnings
53,000
35,000
Explanation / Answer
Ans-
Thank You!!!
Details $ Plant assets (net of accumulated depreciation) 2010 230,000 Depreciation for the year 15000 Book value (net) 215,000 Plant assets (net of accumulated depreciation) 2011 235,000 Cash Spent to Purchase plant assets 20,000