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The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: 1 Dec. 31, 20Y6 Dec. 31, 20Y5 2 Assets 3 Cash...
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:
1
Dec. 31, 20Y6
Dec. 31, 20Y5
2
Assets
3
Cash
$643,400.00
$679,400.00
4
Accounts receivable (net)
566,800.00
547,400.00
5
Inventories
1,011,000.00
982,800.00
6
Investments
0.00
240,000.00
7
Land
520,000.00
0.00
8
Equipment
880,000.00
680,000.00
9
Accumulated depreciation-equipment
(244,400.00)
(200,400.00)
10
Total assets
$3,376,800.00
$2,929,200.00
11
Liabilities and Stockholders' Equity
12
Accounts payable (merchandise creditors)
$771,800.00
$748,400.00
13
Accrued expenses payable (operating expenses)
63,400.00
70,800.00
14
Dividends payable
8,800.00
6,400.00
15
Common stock, $2 par
56,000.00
32,000.00
16
Paid-in capital: Excess of issue price over par—common stock
408,000.00
192,000.00
17
Retained earnings
2,068,800.00
1,879,600.00
18
Total liabilities and stockholders' equity
$3,376,800.00
$2,929,200.00
The income statement for the year ended December 31, 20Y6, is as follows:
1
Sales
$5,980,000.00
2
Cost of merchandise sold
2,452,000.00
3
Gross profit
$3,528,000.00
4
Operating expenses:
5
Depreciation expense
$44,000.00
6
Other operating expenses
3,100,000.00
7
Total operating expenses
3,144,000.00
8
Operating income
$384,000.00
9
Other expense:
10
Loss on sale of investments
(64,000.00)
11
Income before income tax
$320,000.00
12
Income tax expense
102,800.00
13
Net income
$217,200.00
Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:
a. Equipment and land were acquired for cash.b. There were no disposals of equipment during the year.c. The investments were sold for $176,000 cash.d. The common stock was issued for cash.e. There was a $28,000 debit to Retained Earnings for cash dividends declared.
statement of cash flows, using the direct method of presenting cash flows from operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter amounts that represent cash outflows as negative numbers using a minus sign.
