The comparative balance sheet of Tru-Built Construction Inc. for December 31, 20
ID: 2751871 • Letter: T
Question
The comparative balance sheet of Tru-Built Construction Inc. for December 31, 2014 and 2013, is as follows:
The following additional information is taken from the records:
Land was sold for $48.
Equipment was acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $112 credit to Retained Earnings for net income.
There was a $34 debit to Retained Earnings for cash dividends declared.
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2nd question
Cash Flows from Operating Activities—Direct Method
The income statement of Kodiak Industries Inc. for the current year ended June 30 is as follows:
Changes in the balances of selected accounts from the beginning to the end of the current year are as follows:
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3ed question
Cash Flows from Operating Activities—Direct Method
The income statement for M2 Pizza Pie Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows:
Dec. 31, 2014 Dec. 31, 2013 Assets Cash $169 $56 Accounts receivable (net) 97 70 Inventories 61 38 Land 138 157 Equipment 78 61 Accumulated depreciation-equipment (21) (11) Total $522 $371 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $66 $56 Dividends payable 10 - Common stock, $10 par 34 17 Paid-in capital in excess of par-common stock 79 43 Retained earnings 333 255 Total $522 $371Explanation / Answer
Cash Flow statement
Cash Flow statement
Indirect Method Cash Flows from Operating Activities: Net income 112 Add: Depreciation (21-11) 10 Less: Profit on sale of land = 48- (157-138) -29 Less: Increase in Accounts Receivables (97-70) -27 Less: Increase in Inventories (61-38) -23 Add: Increase in Accounts Payable (66-56) 10 Add: Increase in Dividend Payable (10-0) 10 63 Cash Flows from Investing Activities: Sale of land 48 Equipment purchased (78-61) -17 31 Cash Flows from Financing Activities: Common Stock Issued (34-17)+ (79-43) 53 Cash Dividend paid -34 19 Net Cash flows 113 Add: Beginning Cash balance 56 Ending Cash balance 169