Use the following information for the Quick Study below. A comparative balance s
ID: 2551232 • Letter: U
Question
Use the following information for the Quick Study below.
A comparative balance sheet and income statement is shown for Cruz, Inc.
QS 16-12 Computing cash from asset sales LO P3
Furniture costing $67,200 is sold at its book value in 2017. Acquisitions of furniture total $56,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture?
CRUZ, INC.Comparative Balance Sheets
December 31, 2017 2017 2016 Assets Cash $ 69,200 $ 17,200 Accounts receivable, net 29,700 36,500 Inventory 62,200 68,500 Prepaid expenses 3,800 3,100 Total current assets 164,900 125,300 Furniture 76,600 87,800 Accum. depreciation—Furniture (11,900 ) (6,700 ) Total assets $ 229,600 $ 206,400 Liabilities and Equity Accounts payable $ 10,800 $ 15,200 Wages payable 6,400 3,600 Income taxes payable 1,100 2,000 Total current liabilities 18,300 20,800 Notes payable (long-term) 22,700 53,100 Total liabilities 41,000 73,900 Equity Common stock, $5 par value 162,900 127,800 Retained earnings 25,700 4,700 Total liabilities and equity $ 229,600 $ 206,400
Explanation / Answer
Furniture Beg. Bal. 87,800.00 22,000.00 Accumulated Dep. Cash 56,000.00 45,200.00 Cash (Fur. Sold) (Bal. fig.) End. Bal. 76,600.00 Accumulated Depreciation Beg. Bal. 6,700.00 Furniture (Bal. Fig.) 22,000.00 27,200.00 Depreciation Expense End. Bal. 11,900.00 Cost of Furniture 67,200.00 Accumulated Dep. 22,000.00 Book Value (Cash Recd) 45,200.00