I am a little bit stocked with the following problem, I would really appreciate if someone could solve the probelms for me with an additional explanation to each question, ... I really would like to understand it, but at the moment I am not able to see through it,... PLEASE HELP ME, i have to write an exam about the same stuff, ....
Cash 15000 12000
Acoounts Receivable 15000 14000
Inventory 25000 20000
Investment (noncurrent) 110000 105000
Equipment 240000 320000
Accumulated Depr. (20000) (50000)
TOTAL ASSETS 385000 421000
Account Payable 18000 10000
Note Payable 10000 10000
Dividends Payable 5000 10000
Non Current Liabilities:
Note Payable 152000 171000
Common Stock 200000 200000
Treasury Stock (40000) (50000)
Retained Earnings 40000 70000
TOTAL LIABILITIES & OWNERS EQ. 385000 421000
- Investment costing 10000 were sold for 5000
- Dividends paid during 2002 totalled 30000
- The cafe’s can, which cost 20000 was sold for 5000. Its net book value on the date of sale was 3000
- Marketable securities purchased during 2002 for 5000 were sold for a gain of 2000 during 2002
- Assume that the retained earnings account is affected only by dividends declared and the result of operations
- Assume current liabilities are paid on timely basis
- Assume the current amount of notes payable was reclassified from the noncurrent notes payable.
- What amount of dividends was declared during 2002?
- What amount of the note payable was paid during 2002?
- What impact did the change in inventory during 2002 have on cash?
- What impact did the change in accounts payable during 2002 have on cash?
- What was the net income for 2002?
- What amount of investments was purchased during 2002?
- What was the depreciation expense for 2002?
- What was the amount of working capital at the beginning of 2002?
- What amount of cash was received on the sale of marketable securities during the year?
- What amount of treasury stock was sold during 2002?
Thank you very much! I attached the problem as a word document so we can read it easier, .... Cheers Indgo