Problem ATC 12-3 c. In 2013 Tesla paid off $12.7 million of long-term borrowings

Question

Problem ATC 12-3

c. In 2013 Tesla paid off $12.7 million of long-term borrowings and $2.8 milon l ap leases and other debt. Where did it get the funds to repay this debt? d. All things considered, based on the information in its statements of cash flows, does Tesla's cash position appear to be improving or deteriorating? ATC 12-3 Group Assignment Preparing a statement of cash flows The following financial statements and information are available for Blythe Industries Inc. Balance Sheets As of December 31 2017 2010 Assets Cash Accounts receivable Inventory Marketable securities (available for sale) Equipment Accumulated depreciation Land $120,600 $ 160,200 103,200 186,400 284,000 650,000 (310,000) 80,000 $1,153,800 171,800 220,000 490,000 (240,000) 120,000 $967,400 Total assets Liabilities and equity Liabilities Accounts payable (inventory) Notes payable-Long-term Bonds payable S 36,400 230,000 200,000 466,400 66,200 250,000 100,000 416,200 Total liabilities Stockholders' equity Common stock, no par Preferred stock, $50 par Paid-in capital in excess of par-Preferred stock Total paid-In capital Retained earnings Less: Treasury stock 240,000 110,000 34,400 384,400 333,000 (30,000) 687,400 $1.153,800 200,000 100,000 26,800 326,800 264,400 (40,000 551,200 $967,400 Total stockholders' equity Total liabilities and stockholders' equity Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses $1,050,000 (766,500) 283,500 Supplies expense Salaries expense Depreciation expense $20,400 92,000 Total operating expenses Operating income Nonoperating items 81,1 Interest expense Gain from the sale of marketable securities Gain from the sale of land and equipment (16,000) 30,000 12,000 S 107,100 Net income

Explanation / Answer

STATEMENT OF CASH FLOWS Cash flows from operating activities: Net income 107100 Adjustments to reconcile net income with cash flow from operating activities. Depreciation 90000 Gain from sale of marketable securities -30000 Gain from sale of land and equipment -12000 Increase in accounts receivable (103200-85000) -18200 Increase in inventory (186400-171800) -14600 Decrease in accounts payable (66200-36400) -29800 -14600 Net cash from operating activities 92500 Cash flows from investing activities: Sale of marketable securities 70000 Purchase of marketable securities -104000 Sale of land 44000 Sale of equipment 18000 Purchase of new equipment -190000 Net cash used by investing activities -162000 Cash flows from financing activities: Repayment of long term note -20000 Retirement of bonds -100000 Issue of bonds 200000 Sale of treasury stock 10000 Issue of common stock 40000 Issue of preferred stock 17600 Dividends paid (264400+107100-333000) -38500 Net cash from financing activities 109100 Decrease in cash and cash equivalents 39600 Beginning balance of cash and cash equivalents 120600 Ending balance of cash and cash equivalents 160200 a) Cost per share of treasury stock = 10000/100 = $10 b) Issue price per share of preferred stock: Number of preferred stock shares issued = (110000-100000)/50 = 200 Issue price = Total proceeds of issue/200 = 17600/200 = $             88 c) Book value of equipment sold = Cost-Accu depn = 30000-20000 = $     10,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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