Segment 1C Q3 16. Sources and Uses of Cash [LO4] For each account on this compan
ID: 2734568 • Letter: S
Question
Segment 1C Q3
16. Sources and Uses of Cash [LO4] For each account on this company’s balance sheet, show the change in the account during 2015 and note whether this change was a source or use of cash. Do your numbers add up and make sense? Explain your answer for total assets as compared to your answer for total liabilities and owners’ equity.
JUST DEW IT CORPORATION
2014 and 2015 Balance Sheets
Assets
Liabilities and Owners’ Equity
2014
2015
2014
2015
Current assets
Current liabilities
Cash
$
11,135
$
13,407
Accounts payable
$
45,166
$
48,185
Accounts receivable
28,419
30,915
Notes payable
17,773
18,257
Inventory
51,163
56,295
Total
$
90,717
$
100,617
Total
$
62,939
$
66,442
Long-term debt
$
44,000
$
39,000
Owners’ equity
Common stock and paid-in surplus
$
50,000
$
50,000
Retained earnings
260,234
302,735
Net plant and equipment
$
326,456
$
357,560
Total
$
310,234
$
352,735
Total assets
$
417,173
$
458,177
Total liabilities and owners’ equity
$
417,173
$
458,177
JUST DEW IT CORPORATION
2014 and 2015 Balance Sheets
Assets
Liabilities and Owners’ Equity
2014
2015
2014
2015
Current assets
Current liabilities
Cash
$
11,135
$
13,407
Accounts payable
$
45,166
$
48,185
Accounts receivable
28,419
30,915
Notes payable
17,773
18,257
Inventory
51,163
56,295
Total
$
90,717
$
100,617
Total
$
62,939
$
66,442
Long-term debt
$
44,000
$
39,000
Owners’ equity
Common stock and paid-in surplus
$
50,000
$
50,000
Retained earnings
260,234
302,735
Net plant and equipment
$
326,456
$
357,560
Total
$
310,234
$
352,735
Total assets
$
417,173
$
458,177
Total liabilities and owners’ equity
$
417,173
$
458,177
Explanation / Answer
THE FIRM USES THE CASH OF $41004 FOR PURCHASE OF NEW ASSETS THROUGH RAISING THE LIBALITY AND OWNERS EQUITY BY $41004.
2014 SOURCES/USES 2015 CURRENT ASSETS CASH $11135 $2272 (U) $13407 ACCOUNTS RECEIVABLE 28419 2496 (U) 30915 INVENTORY 51163 5132 (U) 56295 TOTAL 90717 9900 (U) 100617 NET PLANT & EQUIPEMENT 326456 31104 (U) 357560 TOTAL ASSETS 417173 41004 (U) 458177 CURRENT LIBALITES ACCOUNTS PAYABLE 45166 3019 (S) 48185 NOTES PAYABLE 17773 484 (S) 18257 TOTAL 62939 3503 (S) 66442 LONG TERM DEBT 44000 5000 (U) 39000 OWNERS EQUITY COMMON STOCK & PAID IN SURPLUS 50000 0 50000 RETAINED EARNNING 260234 42501 (S) 302735 TOTAL 310234 42501 (S) 352735 TOTAL LIBALITY & OWNERS EQUITY 417173 41004 (S) 458177