The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is
ID: 2568396 • Letter: T
Question
The comparative balance sheet of Cromme Inc. for December 31, 2016 and 2015, is shown as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$625,820.00
$586,050.00
4
Accounts receivable (net)
227,530.00
209,880.00
5
Inventories
641,480.00
616,920.00
6
Investments
0.00
240,910.00
7
Land
327,510.00
0.00
8
Equipment
704,830.00
554,110.00
9
Accumulated depreciation-equipment
(165,750.00)
(148,570.00)
10
Total assets
$2,361,420.00
$2,059,300.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$424,970.00
$405,330.00
13
Accrued expenses payable (operating expenses)
42,810.00
51,640.00
14
Dividends payable
23,200.00
19,840.00
15
Common stock, $4 par
158,000.00
98,000.00
16
Paid-in capital: Excess of issue price over par—common stock
417,900.00
280,700.00
17
Retained earnings
1,294,540.00
1,203,790.00
18
Total liabilities and stockholders’ equity
$2,361,420.00
$2,059,300.00
Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows:
1
Dec. 31, 2016
Dec. 31, 2015
2
Assets
3
Cash
$625,820.00
$586,050.00
4
Accounts receivable (net)
227,530.00
209,880.00
5
Inventories
641,480.00
616,920.00
6
Investments
0.00
240,910.00
7
Land
327,510.00
0.00
8
Equipment
704,830.00
554,110.00
9
Accumulated depreciation-equipment
(165,750.00)
(148,570.00)
10
Total assets
$2,361,420.00
$2,059,300.00
11
Liabilities and Stockholders’ Equity
12
Accounts payable (merchandise creditors)
$424,970.00
$405,330.00
13
Accrued expenses payable (operating expenses)
42,810.00
51,640.00
14
Dividends payable
23,200.00
19,840.00
15
Common stock, $4 par
158,000.00
98,000.00
16
Paid-in capital: Excess of issue price over par—common stock
417,900.00
280,700.00
17
Retained earnings
1,294,540.00
1,203,790.00
18
Total liabilities and stockholders’ equity
$2,361,420.00
$2,059,300.00
| Cengage Maindo Print Itom Statement ot cach Statement of Cash Flows Statement of Cah lows Gain oncal ime:tmcnt 59.11000 281000 17i] 21,51000 1964000 Common ctock 51 par 8.000.00 8070000 1,10¥90.00 1792000 1,294,54111 otl iabilibes and stockholdors equit 153.1000 Cash flows from mesting activities: Aditional data obtalned trom an examinaton ot the accounts In the ledger tor 2016 are as tolloas $28002000 Lath pad tor purchace or ane 152.72000 78 23000 R. Fquipment and land aer" Acquired for cash. C. There were no dspasals of equpment during the yea O. The commen stock was issued far cash 20,000.00 Propavc a statamant ot casn ows, uing the ndirect mathed of prcsentin the oxact warcing of the anar checs for toxt ntnics. Ec su to compcte the hacing o tho stotement. in the opesting actntics section, ce th minus sign to indicate cash outlows decreases cash ng J nct csen cuthow, requircd. I the Mvosting and nnancing activities scchon, usca mius sany to NoeVcst NET Cash autricw for tho section. k Mr Werk ssgrnment Score: 9.54% Save and Fit Suhmit Assignment tor Grading O Type henc to scarcihExplanation / Answer
Cromme Inc Cash Flow Statement For year ended 31 December 2016 Cash flows from operating activities Net Income $ 186,520 Adjustment to reconcile net income to: Depreciation expense $ 17,180 $165,750-$148,570 Gain on sale of investments $ (39,110) $240,910-$280,020 Changes in current operating assets and liabilities Increase in accounts receivable $ (17,650) Increase in inventories $ (24,560) Increase in accounts payable $ 19,640 Decrease in accrued expense payable $ (8,830) $ (53,330) Net cash provided by operating activities $ 133,190 Cash flows from investing activities Proceed from sale of investments $ 280,020 Purchase of Equipment $ (150,720) Purchase of Land $ (327,510) Net cash used by investing activities $ (198,210) Cash flows from financing activities Proceeds from issue of shares $ 197,200 Dividend paid $ (92,410) $23,200-$19,840-$95,770 Net cash Provided by financing activities $ 104,790 Net increase in cash and cash equivalents $ 39,770 Cash and cash equivalents at beginning of period $ 586,050 Cash and cash equivalents at end of period $ 625,820