Brecker Inc., a greeting card company, had the following statements prepared as
ID: 2450872 • Letter: B
Question
Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2014.
BRECKER INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2014 AND 2013
12/31/14
12/31/13
$6,067
$8,897
62,098
49,128
34,909
18,087
39,915
59,866
5,014
4,042
153,330
125,780
(35,140
)
(25,042
)
46,115
50,102
$312,308
$290,860
$45,942
$41,885
4,177
6,153
7,842
3,976
7,957
10,020
59,898
67,031
104,260
104,260
26,600
26,600
55,632
30,935
$312,308
$290,860
BRECKER INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2014
$341,239
174,030
167,209
120,910
46,299
$11,361
2,127
9,234
37,065
6,746
$30,319
Additional information:
Prepare a statement of cash flows using the indirect method.
BRECKER INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2014 AND 2013
12/31/14
12/31/13
Cash$6,067
$8,897
Accounts receivable62,098
49,128
Short-term investments (available-for-sale)34,909
18,087
Inventory39,915
59,866
Prepaid rent5,014
4,042
Equipment153,330
125,780
Accumulated depreciation—equipment(35,140
)
(25,042
)
Copyrights46,115
50,102
Total assets$312,308
$290,860
Accounts payable$45,942
$41,885
Income taxes payable4,177
6,153
Salaries and wages payable7,842
3,976
Short-term loans payable7,957
10,020
Long-term loans payable59,898
67,031
Common stock, $10 par104,260
104,260
Contributed capital, common stock26,600
26,600
Retained earnings55,632
30,935
Total liabilities & stockholders’ equity$312,308
$290,860
Explanation / Answer
working Notes:
For the year ended on December 31, 2016 ($ in thousands) Cash Flow from Operating Activities $ $ $ Net Income 30319 Adjustments for: Add: Depreciation (35140 - 25042 + 21238) 31336 Amortization of copyright (50102-46115) 3987 Income tax Expense 6746 Interest Expense 11361 decrease in inventory (59866-39915) 19951 Increase in salaries and wages payable (7842-3976) 3866 Increase in Accounts payable (45942-41885) 4057 Gain on sale of equipment -2127 Increase in accounts receivable (62098-49128) -12970 Increase in short term investments (34909-18087) -16822 Increase in prepaid rent (5014-4042) -972 Decrease in short term loan payable (10020-7957) -2063 46350 Cash Flow from Operating Activities before income tax 76669 Payment of income tax (6153+6746-4177) -8722 Net Cash Flow from Operating Activities 67947 Cash Flow from Investing Activities Sale of equipment 11229 Purchase of equipments -57890 Net Cash Folw from Investing Activities -46661 Cash Flow from financing Activities Dividend Paid -5622 Interest paid -11361 repayment of long term loan (67031-59898) -7133 Net Cash Flow from Financing Activities -24116 Net Cash Flow during the year -2830 Add: Cash balance as on January 1, 2016 8897 Cash Balance as on December 31, 2016 6067Related Questions
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