Check my work 3 The following financial statements and information are available
ID: 2532196 • Letter: C
Question
Check my work 3 The following financial statements and information are available for Vernon Industries, Inc.: Balance Sheets As of December 31 2017 2016 Part 1 of 2 AssetS Cash Accounts receivable Inventory Marketable securities (available for sale) Equipment Accumulated depreciation Land 105, 600 188, 50O 296, 800 687,400 (307,100) 82,400 1,216,300 s 162,700 123,100 87,300 174, 200 222,500 492, 800 (237,400) 118,200 980, 700 1.75 polnts Total agsetS eBook Print References Liabi1ities and equity Liabilities $ Accounts payable (inventory) Notes payable-Long-term Bonds payable 38, 800 229, 600o 205, 400 473, 800 $ 68, 600 252, 60O 102,700 423, 900 Total 11abilit1e3 Stockholders equity Common stock, no par Preferred stock, $50 par Paid-in capital in excess of par-Preferred ?tock Total paid-In capital Retained earnings Less: Treasury stock 242, 700 112, 90O 36,900 392, 500 388,900 (38,900) 742, 500 $1,216,300 202,900 92, 900 30,900 326, 700 299, 000 68,900) 556, 800 s 980, 700 Total astockholde' equity Total 1iabilities and stockholders' equityExplanation / Answer
Working:
VERMON INDUSTRIES INC. Statement of cash flows for the year ended December 31, 2017 (Direct method) Cash flow from operating activities Cash collection from sale * 1034100 Cash payment for cost of goods sold ** -812900 Cash payment for operating expenses *** -117500 Net cash flow from operating activities 103700 Cash flow from investing activities Sale of land 39800 Sale of equipment 21000 Purchase of equipment -222000 Sale of marketable securities 81300 Purchase of new marketable securities -120600 Net cash flow from investing activities -200500 Cash flow from financing activities Retirement of note payable -23000 Retirement on bonds payable -102700 Issue of bonds payable 205400 Sale of treasury stock 30000 Issue of common stock (242,700 - 202,900) 39800 Issue of preferred stock(112,900+36,900-92,900-30,900) 26000 Payment of interest -14400 Cash dividends paid **** -24700 Net cash flow from financing activities 136400 Net cash flow 39600 Cash balance as on January1, 2017 123100 Cash balance as on June 30, 2017 162700 Cash from sale Accounts receivable as on January 1, 2017 87300 Plus : Sale for the year 1052400 Total 1139700 Less: Accounts receivable as on December 31, 2017 105600 Cash collection from sale * 1034100 Cash payment for cost of goods sold Cost of goods sold for the year 768800 Plus: Ending balance of inventory 188500 Total 957300 Less: Beginning balance of inventory 174200 Purchase of inventory 783100 Plus: Beginning accounts payable 68600 851700 Less: Ending accounts payable 38800 Cash payment for cost of goods sold ** 812900 Cash payment for operating expenses Supplies expense 23000 Salaries expense 94500 Total cash payment for operating expenses *** 117500 Dvidends paid Retained earnings on January 1, 2017 299000 Plus: Net income for the year 114600 Total 413600 Less: Retained earnings on December 31, 2017 388900 Cash dividends paid **** 24700