I.Assignment Requirement:
This assignment is about how to make and analyze three statements, especially for Cash Flow Statement. Selected financial statement information and additional data for A Company is presented below Please Prepare a statement of cash flows for the year ending December 31, 2016.
Please try to finish your assignment and submit your assignment to e-class no later than 18:00 on Oct. 12th. Late submission will NOT be accepted and 10 points will be deducted from your final scores.
A Company
Dec. 31, 2016 Dec. 31, 2015
Property, Plant, and Equipment $1,241,000 $1,122,000
Less: Accumulated Depreciation (476,000) (442,000)
765,000 680,000
Current Assets:
Inventory 391,000 340,000
Accounts Receivable 238,000 306,000
Cash 153,000 119,000
Total Current Assets 782,000 765,000
Current Liabilities:
Accounts Payable 187,000 102,000
Notes Payable 51,000 68,000
Income Taxes Payable 85,000 76,500
Total Current Liabilities 323,000 246,500
Total Liabilities 663,000 637,500
Total Liabilities & Equity 1,547,000 1,445,000
Sales Revenue $1,615,000 $1,513,000
Less Cost of Goods Sold 731,000 731,000
Gross Profit 884,000 782,000
Expenses:
Depreciation Expense 153,000 136,000
Salaries and Wages Expense 391,000 357,000
Interest Expense 34,000 34,000
Loss on Sale of Equipment 17,000 0
Income Before Taxes 289,000 255,000
Less Income Tax Expense 119,000 102,000
Net Income $ 170,000 $ 153,000
Additional Information:
During the year, A Company sold equipment with an original cost of $153,000 and accumulated depreciation of $119,000 and purchased new equipment for $272,000.