The comparative balance sheets for 2016 and 2015 and the statement of income for
ID: 2579165 • Letter: T
Question
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 (S in 000s) 2016 2015 Assets Cash Accounts receivable Short-term investment Inventory Land Buildings and equipment $ 72 $ 35 80 30 10 75 54 65 510 410 (121) (80) 79 79 Less: Accumulated depreciation $ 703 $595 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Shareholders' Equity Common stock Paid-in capital excess of par Retained earnings $ 27 $ 36 4 6 10 0 20 150 110 250 210 145 105 116 96 $ 703 $ 595 WRIGHT COMPANY Income Statement For Year Ended December 31, 2016 (S in 000s) Revenues Sales revenue $350 Expenses: Cost of goods sold Salaries expense 5140 53Explanation / Answer
Working Cash Receipts from Customers Sales $ 350.00 Add: Opening Debtors $ 80.00 Less: closing Debtors $ 79.00 Cash Receipts from Customers $ 351.00 Cash Payment Purchases $ 144.00 Add:Opening Creditors $ 36.00 Less: Closing Creditors $ 27.00 Cash Payment $ 153.00 Purchases Cost of goods sold $ 140.00 Add: Closing Stock $ 79.00 Less: Opening Stock $ 75.00 Purchases $ 144.00 Salaries Paid Salaries Expense $ 53.00 Add:Opening Salary Payable $ 6.00 Less: Closing salary Payable $ 4.00 Salaries Paid $ 55.00 Interest Paid Interest expense $ 10.00 Add: Opening Interest Payable $ 2.00 Less: Closing Interest Payable $ 5.00 Interest Paid $ 7.00 Income Tax Paid Income Tax expense $ 50.00 Add: Opening Income tax Payable $ 10.00 Less: closing Income Tax Payable $ 6.00 Income Tax Paid $ 54.00 Land A/c Particular Amount Particular Amount To Opening Balance $ 65.00 By Bank $ 5.00 By Loss on Sale $ 6.00 By Closing Balance $ 54.00 $ 65.00 $ 65.00 Wreight Company Cah Flow Statement For the Year Ended December 31st, 2016 Cash Flow from Operating Activity Cash Receipts from customers $ 351.00 Cash Payment to Suppliers $ (153.00) Cash Paid for salaries $ (55.00) Interest Paid $ (7.00) Income Tax Paid $ (54.00) Cash Flow from Operating Activity $ 82.00 Cash Flow from Investing Activity Sale of Land $ 5.00 (given in point no a) Purchased of short term investment $ (20.00) (given in point no b) Equipment Purchased $ (100.00) (given in point no c ) Cash Flow from Investing Activity $ (115.00) Cash Flow from Financing Activity Repayment of note Payable $ (20.00) (given in point no d) Sale of Bonds $ 40.00 (given in Point no e) Issue of common stock $ 40.00 (given in point no f) Paid in excess of Par $ 40.00 (given in Point no f) Dividend Paid $ (30.00) (given in Point no g) Cash Flow from Financing Activity $ 70.00 Net Increase in Cash $ 37.00 Cash at beginning of period $ 35.00 Cash at end of the Period $ 72.00