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 searchExplanation / 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
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