Part 3: Free Response (35 points total). Partial credit given Vandy Corporation\
ID: 2589903 • Letter: P
Question
Part 3: Free Response (35 points total). Partial credit given Vandy Corporation's balanc e sheet and income statement appear below: Comparative Balance Sheet Ending Beginning Balance Balance Assets Cash and cash equivalents Accounts receivable .. Inventory. Property, plant and equipmen.. Less accumulated depreciation Total assets . s 31 61 59 684 349 $486 S 29 73 61 550 319 $394 Liabilities and Stockholders' Equity Accounts payable. S 53 20 52 203 61 S 54 21 48 190 60 21 S394 Accrued liabilities. Income taxes payabl. .. Bonds payable. Retained earnings. Total liabilities and stockholders' equity, $486 Income Statement Sales Gross margin Net operating income Income before taxes .. Net income. $807 Cost of goods sold. 492 315 Selling and administrative expense.. 182 133 Gain on sale of equipmen.. 16 149 45 S104 The company sold equipment for S18 that was originally purchased for $14 and tha accumulated depreciation of S12. It paid a cash dividend of S$28 during the year ane not retire any bonds payable or repurchase any of its own common stock.Explanation / Answer
cash flow statement cash flow from operating income net income 104 add depreciation 42 add accounts receivable 12 add inventory 2 less accounts payable -1 less accrued libilities -1 add gain on sale of investment -16 add common stock 1 add income tax payable 4 income from operating activity 147 cash flow from investing activity property, plant and equipment -148 sale of investment 18 cash flow from investing activity -130 cash flow from financing activity bond payable 13 cash dividend -28 cash flow from financing activity -15 net cash and cash equvilant 2 cash and cash equivalent 29 closing cash and cash equvilant 31