Union Brake Inc. \'s comparative balance sheet information at December 31, 2017

Question

Union Brake Inc. 's comparative balance sheet information at December 31, 2017 and 2016, and its income statement for the year ended December 31, 2017, Union Brake Inc Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold $879,000 571,000 Gross profit Operating expenses Depreciation expense Operating Profit Los $308,000 $132,670 41,230 173,900 134,100 s on sale of equipment Investment income 12,140 19,020 Profit before taxes Income taxes Profit 140,980 17,000 123,980 Union Brake Inc. Balance Sheet Information December 31 2017 2016 Net Change Cash Cash equivalents Accounts receivable Inventory Investment Land Building and equipment Accumulated depreciation Accounts payable Dividends payable Bonds payable Preferred shares Common shares Retained earnings $ 43,000 24,780 87,320 113,240 23,960 19,040 16,180 54,880 34,720 (24,780) 75,800 420,530 113,080 11,870 1,800 19,000 80,600 405,080 133,240 8,600 32,440 78,520 24,780 75,800 439,550 91,960 36,800 1,100 (19,020) 21,120 (24,930) 700 19,000 80,600 405,080 68,110 65,130

Explanation / Answer

Req 1: Dividend paid: Beginning balance of RE 68110 Add: Net income 123980 Less: Ending Balance in RE -133240 Dividend declared 58850 Add: Dividend payable in beginning 1100 Les: Ending balance in Dividend payable -1800 Dividend paid: 58150 Req 2: CASH FLOW STATEMENT Cash flows from Operating Activities: Net income during the year 123980 Adjustment to reconcile the profits Depreciation 41230 Loss on sale of equipment 12140 Investment income -19020 Increase in Accounts receivable -54880 Increae in inventory -34720 Decrease in accounts payable -24930 Net cash provided from Operating Activities 43800 Cashflows from Investing Aactivities: Purchase of equipment -20700 Sale of equipment 7470 sale of long term investment 43800 Net csh provided from investing activities 30570 Cashflows from Financing Activities Dividend paid -58150 Issue of bonds payable 19000 Net cash used in financing activites -39150 Net cash increase 35220 Add: Beginning cash and cash equivalent balance 32560 Ending balance of casah andd cash equivalents 67780

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.