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Problem 2-3 (Video) Review Figure 2-12 and complete the blanks below to show the

ID: 2329301 • Letter: P

Question

Problem 2-3 (Video) Review Figure 2-12 and complete the blanks below to show the relationships among the four financial statements for Shamrock Brothers Corporation: Balance Sheet (12/31/2016) Statement of Cash Flows (year ending 12/31/2017) Balance Sheet (12/31/2017) Cash Other current assets Long-term investments Total assets $410 Cash-Operating 1,340 Cash-Investing 1,300 $410 Cash 1,450 1,500 (200) Other current assets Long-term investments Total assets Cash-Financing 260 $3,050 A in cash Cash-12/31/16 Cash-12/31/17 Current liabilities Long-term liabilities Common stock Retained earnings $650 1,100 1100 Revenue $1,030 1,100 1,400 Income Statement Current liabilities (year ending 12/31/2017) Long-term liabilities $4,110 Common stock 200 Expenses 3,970Retained earnings Total $3,050 Net income Total Statement of Shareholders' Equity (year ending 12/31/2017) Common Stock Retained Earnings 12/31/16 Net income Dividends Stock issuance $1,100 $200 (40 ) 300 12/31/17

Explanation / Answer

Answer

Balance Sheet - 12/31/16

Statement of Cash Flows

Balance Sheet - 12/31/17

Cash

$                        410.00

Cash - Operating

$               410.00

Cash

$              880.00 (4 – value calculated at ‘3’)

Other Current Assets

$                     1,340.00

Cash - Investing

$             (200.00)

Other Current Assets

$          1,450.00

Long Term Investments

$                     1,300.00

Cash - Financing

$               260.00

Long Term Investments

$          1,500.00

Total Assets

$                     3,050.00

Change in Cash

$               470.00 (1 – Sum of above]

Total Assets

$          3,830.00 (5 – Total)

Cash - 12/31/16

$               410.00 (2 – from Balance sheet 12/31/16)

Cash - 12/31/17

$               880.00 (3 – Sum of above)

Current Liabilities

$                        650.00

Income Statement

Current Liabilities

$          1,030.00

Long Term Liabilities

$                     1,100.00

year ending 12/31/17

Long Term Liabilities

$          1,100.00

Common Stock

$                     1,100.00

Revenues

$           4,110.00

Common Stock

$          1,400.00

Retained earnings

$                        200.00

Expenses

$           3,970.00

Retained earnings

$              300.00 ( 8 – value from ‘7’ calculated below)

Total

$                     3,050.00

Net Income

$               140.00 (6 – revenue – Exp)

Total

$          3,830.00

Statement of Shareholder's Equity

Common Stock

Retained Earnings

12/31/16

$                     1,100.00

$               200.00

Net Income

$               140.00 (6 – calculated above)

Dividends

$               (40.00)

Stock Issuance

$                        300.00

$ 0

12/31/17

$                     1,400.00

$               300.00 ( 7 – Sum of above)

Balance Sheet - 12/31/16

Statement of Cash Flows

Balance Sheet - 12/31/17

Cash

$                        410.00

Cash - Operating

$               410.00

Cash

$              880.00 (4 – value calculated at ‘3’)

Other Current Assets

$                     1,340.00

Cash - Investing

$             (200.00)

Other Current Assets

$          1,450.00

Long Term Investments

$                     1,300.00

Cash - Financing

$               260.00

Long Term Investments

$          1,500.00

Total Assets

$                     3,050.00

Change in Cash

$               470.00 (1 – Sum of above]

Total Assets

$          3,830.00 (5 – Total)

Cash - 12/31/16

$               410.00 (2 – from Balance sheet 12/31/16)

Cash - 12/31/17

$               880.00 (3 – Sum of above)

Current Liabilities

$                        650.00

Income Statement

Current Liabilities

$          1,030.00

Long Term Liabilities

$                     1,100.00

year ending 12/31/17

Long Term Liabilities

$          1,100.00

Common Stock

$                     1,100.00

Revenues

$           4,110.00

Common Stock

$          1,400.00

Retained earnings

$                        200.00

Expenses

$           3,970.00

Retained earnings

$              300.00 ( 8 – value from ‘7’ calculated below)

Total

$                     3,050.00

Net Income

$               140.00 (6 – revenue – Exp)

Total

$          3,830.00

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