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b. Condensed fnancial data of Monopoly Corporation appear below A cash dividend

ID: 2432811 • Letter: B

Question

b. Condensed fnancial data of Monopoly Corporation appear below A cash dividend was dedlared and paid in full to stockholders during the year Required: Solve for the missing numbers. (Enter any deductions and cash oufflows as a negative value ) Comparative Balance Sheet Assets 34040 S 22.400 Acoourts receivable 31,600 09.800 1,600 196,000 (38,000) 324.300283.200 Prepaid rent Property, plant, and equipment 2,000 218,000 (52.600 Total assets Apeounts payable Acorued Lablises Notes payable (ang-term) 37.20033,000 11.000 40.000 23.000 00.000 10,000 128.000 40,000 103,100 Retained Saies 31 500 Cost of 8. 400 Type here to search

Explanation / Answer

                                       Monopoly Corporation

                                   Comparative Balance Sheet

                                             December 31

Current year

Prior Year

                                                         Assets

Cash

$ 34,040

$ 22,400

Accounts receivable

$ 35,200

$ 31,600

Inventories

$ 87,600

$ 69,600

Prepaid rent

$ 2,060

$ 1,600

Property , plant and equipment

$ 2,18,000

$ 1,96,000

Accumulated Depreciation

($52,600)

($38,000)

Total Assets

$ 3,24,300

$ 2,83,200

                                   Liabilities and stockholders equity

Accounts payable

$ 37,200

$ 33,600

Accrued liabilities

$ 10,000

$ 11,600

Notes payable (long term)

$ 1,28,000

$ 1,46,000

Contributed capital

$ 46,000

$ 23,000

Retained earnings

$ 1,03,100

$ 69,000

Total liabilities and stockholders equity

$ 3,24,300

$ 2,83,200

                                         Monopoly Corporation

                                        Income Statement

                                  Year Ended December 31

Sales

$ 4,51,500

Expenses

   Cost of goods sold

-$ 2,86,000

   Selling ,general & administrative expenses

-$ 92,000

   Depreciation Expenses

-$ 14,600

Interest Expense

-$ 8,600

Income Taxes

-$ 16,600

-$ 4,17,800

Net Income

$ 43,700

                                       Monopoly Corporation

                                       Cash Flow Statement

                                   Year Ended December 31

Cash flow from operating activities

Net Income

$ 43,700

Depreciation

$ 14,600

Changes in current assets and current liabilities

      Accounts receivable

( $ 3,600)

      Inventory

($ 18,000)

      Prepaid Rent

( $ 460)

     Accounts Payable

$ 3,600

     Accrued Liabilities

($ 1,600)

Net cash provided by (used in ) operating activities

($ 20,060)

Cash flows from Investing Activities

    Purchase of property , plant and equipment

($22,000)

Net cash provided by (used for )investing activities

($ 22,000)

Financing Activities

    Additional Capital contributed by stockholders

$ 23,000

   Payments on long term debts

($18,000)

   Payment of cash dividends

($ 9600)

Net cash provided by (used for )financing activities

($ 4,600)

Increase in cash and cash equivalents

$ 11,640

Cash and cash equivalents at beginning of period

$ 22,400

Cash and cash equivalents at end Cash and of period

$ 34,040

Working Notes:

1.Current year Accounts receivable=$ 31600+$3600=$35200

2. Current year Inventories=$ 69600+$18,000=$ 87,600

3. Depreciation Expense=$ 52600-$38000= $14,600

4. Income Tax= $ 417800-($286000+$92000+$14600+$8600)=$ 16600

5.Changes in Prepaid Rent=$ 2060-$ 1600=$ 460

6. Changes in Accrued Liabiities=$ 11600-$10,000=$ 1600

7.Additional Capital Contributed= $ 46,000-$23,000=$ 23,000

8.Payments of cash dividend=$ 43700+$14600-$20060-$22000+$23000-$18000-dividend payment=$11640

Therefore Dividend Payment=$ 9600

                                       Monopoly Corporation

                                   Comparative Balance Sheet

                                             December 31

Current year

Prior Year

                                                         Assets

Cash

$ 34,040

$ 22,400

Accounts receivable

$ 35,200

$ 31,600

Inventories

$ 87,600

$ 69,600

Prepaid rent

$ 2,060

$ 1,600

Property , plant and equipment

$ 2,18,000

$ 1,96,000

Accumulated Depreciation

($52,600)

($38,000)

Total Assets

$ 3,24,300

$ 2,83,200

                                   Liabilities and stockholders equity

Accounts payable

$ 37,200

$ 33,600

Accrued liabilities

$ 10,000

$ 11,600

Notes payable (long term)

$ 1,28,000

$ 1,46,000

Contributed capital

$ 46,000

$ 23,000

Retained earnings

$ 1,03,100

$ 69,000

Total liabilities and stockholders equity

$ 3,24,300

$ 2,83,200