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Homework answers / question archive / Golden West College - ACCT G101 A comparative balance sheet, income statement, and additional financial information for Gorni Company appear below:   GORNI COMPANY Comparative Balance Sheet December 31    2014                2013         Assets   Cash $ 70,000 $ 35,000 Accounts receivable 82,000 53,000 Inventories 120,000 132,000 Prepaid expenses 19,000 25,000 Investments 80,000 65,000 Plant assets 310,000 250,000 Accumulated depreciation    (65,000)    (60,000) Total $616,000 $500,000 Liabilities and Stockholders' Equity Accounts payable   $ 85,000 $ 75,000 Accrued expenses payable   22,000 24,000 Bonds payable   130,000 150,000 Common stock   245,000 170,000 Retained earnings   134,000     81,000 Total   $616,000 $500,000             GORNI COMPANY Income Statement For Year Ended December 31, 2014 Sales   $480,000   Less:         Cost of goods sold $290,000     Operating expenses (excluding depreciation) 60,000     Depreciation expense 17,000     Income taxes 15,000     Interest expense 13,000     Loss on disposal of plant assets       8,000   403,000 Net income                                                                                                                               $ 77,000   Additional information: New plant assets costing $85,000 were purchased for cash in 2014

Golden West College - ACCT G101 A comparative balance sheet, income statement, and additional financial information for Gorni Company appear below:   GORNI COMPANY Comparative Balance Sheet December 31    2014                2013         Assets   Cash $ 70,000 $ 35,000 Accounts receivable 82,000 53,000 Inventories 120,000 132,000 Prepaid expenses 19,000 25,000 Investments 80,000 65,000 Plant assets 310,000 250,000 Accumulated depreciation    (65,000)    (60,000) Total $616,000 $500,000 Liabilities and Stockholders' Equity Accounts payable   $ 85,000 $ 75,000 Accrued expenses payable   22,000 24,000 Bonds payable   130,000 150,000 Common stock   245,000 170,000 Retained earnings   134,000     81,000 Total   $616,000 $500,000             GORNI COMPANY Income Statement For Year Ended December 31, 2014 Sales   $480,000   Less:         Cost of goods sold $290,000     Operating expenses (excluding depreciation) 60,000     Depreciation expense 17,000     Income taxes 15,000     Interest expense 13,000     Loss on disposal of plant assets       8,000   403,000 Net income                                                                                                                               $ 77,000   Additional information: New plant assets costing $85,000 were purchased for cash in 2014

Accounting

Golden West College - ACCT G101

A comparative balance sheet, income statement, and additional financial information for Gorni Company appear below:

 

GORNI COMPANY

Comparative Balance Sheet December 31

   2014                2013      

 

Assets

 

Cash

$ 70,000

$ 35,000

Accounts receivable

82,000

53,000

Inventories

120,000

132,000

Prepaid expenses

19,000

25,000

Investments

80,000

65,000

Plant assets

310,000

250,000

Accumulated depreciation

   (65,000)

   (60,000)

Total

$616,000

$500,000

Liabilities and Stockholders' Equity

Accounts payable

 

$ 85,000

$ 75,000

Accrued expenses payable

 

22,000

24,000

Bonds payable

 

130,000

150,000

Common stock

 

245,000

170,000

Retained earnings

 

134,000

    81,000

Total

 

$616,000

$500,000

         

 

GORNI COMPANY

Income Statement

For Year Ended December 31, 2014

Sales

 

$480,000

 

Less:

 

 

 

 

Cost of goods sold

$290,000

 

 

Operating expenses (excluding depreciation)

60,000

 

 

Depreciation expense

17,000

 

 

Income taxes

15,000

 

 

Interest expense

13,000

 

 

Loss on disposal of plant assets

      8,000

  403,000

Net income                                                                                                                               $ 77,000

 

Additional information:

  1. New plant assets costing $85,000 were purchased for cash in 2014.
  2. Old plant assets costing $25,000 were sold for $5,000 cash when book value was $13,000.
  3. Bonds with a face value of $20,000 were converted into $20,000 of common stock.
  4. A cash dividend of $24,000 was declared and paid during the year.

 

Instructions: Using the indirect method, prepare in proper financial statement format a statement of cash flows for the year ended December 31, 2014. Use the table on the next page to prepare the statement.

 

 

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