Prepare balance sheet and retained earnings statement using statement of cash fl
ID: 2551070 • Letter: P
Question
Prepare balance sheet and retained earnings statement using statement of cash flows data Following are a statement of cash flows (indirect method) for Harris, Inc., for the year ended December 31, 2017, and the firm's balance sheet at December 31, 2016: HARRIS, INC. Statement of Cash Flows For the Year Ended December 31,2017 Cash Flows from Operating Activities: Add (deduct) items not affecting cash: 87,000 (18,000) 90,000 9,000 $ 207,000 Net cash provided by operating activities . Cash Flows from Investing Activities: (270,000) 21,000 Proceeds from sale of land at its cost....................... Net cash used by investing activities. __ ....._. __ ....._. .. ..__. _. ......$(249 Cash Flows from Financing Activities: (12,000) (27,000) 5,000 24,000 (15,000 Payment of Proceeds from issuance of long-term debt ....__ .. . . .___ . .. .___ . .. Proceeds from issuance of common stock..... _ _ . . . . . _ ....__....._...... Payment of cash dividends on common stock. .__ . ...___. .. . Net cash provided by financing activities ._____ ..._ _ _ .. .__._ ..._ ___ . ...$ 15,000 Net decrease in cash for the year...... . .. .. .. . .. . .. . .. .. . (27.000Explanation / Answer
a. BALANCE SHEET AS ON DECEMBER 31 2017 2017 2016 ASSETS: (45000-27000) Cash $18,000 $45,000 (183000+18000) Accounts receivable $201,000 $183,000 (228000-90000) Merchandise inventory $138,000 $228,000 Total current assets $357,000 $456,000 (102000-21000) Land $81,000 $102,000 (354000+270000) Buildings $624,000 $354,000 (-216000-87000) Less: Accumulated depreciation ($303,000) ($216,000) Total land and buildings $402,000 $240,000 Total Assets $759,000 $696,000 Liabilities: (174000+9000) Accounts payable $183,000 $174,000 (48000-12000) Short term debts $36,000 $48,000 (99000-27000) Notes payable $72,000 $99,000 Total current liabilities $291,000 $321,000 (150000+45000) Long term debts $195,000 $150,000 Stockholders' Equity (60000+24000) Common stock-no par $84,000 $60,000 (165000+39000-15000) Retained earning $189,000 $165,000 Total shareholders'equity $273,000 $225,000 Total liabilities and stockholders'equity $759,000 $696,000 b Statement of changes in retained earnings Retained earnings at the beginning of the year $165,000 Add: Net Income $39,000 Less: payment of dividend ($15,000) Retained earning at the end of the year $189,000