ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 $5
ID: 2609874 • Letter: R
Question
ROTHLISBERGER COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
$59,900
$46,500
43,400
62,100
148,100
145,600
15,000
24,600
96,500
130,300
198,700
198,700
(56,200
)
(31,200
)
230,300
156,600
(44,300
)
(36,200
)
$691,400
$697,000
Liabilities and Stockholders’ Equity
$46,200
$39,000
260,000
291,200
189,500
158,300
195,700
208,500
$691,400
$697,000
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.ROTHLISBERGER COMPANY
Comparative Balance Sheets
December 31
Assets
2017
2016
Cash$59,900
$46,500
Accounts receivable43,400
62,100
Inventory148,100
145,600
Prepaid expenses15,000
24,600
Land96,500
130,300
Buildings198,700
198,700
Accumulated depreciation—buildings(56,200
)
(31,200
)
Equipment230,300
156,600
Accumulated depreciation—equipment(44,300
)
(36,200
)
Total$691,400
$697,000
Liabilities and Stockholders’ Equity
Accounts payable$46,200
$39,000
Bonds payable260,000
291,200
Common stock, $1 par189,500
158,300
Retained earnings195,700
208,500
Total$691,400
$697,000
Additional information:
1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $9,600. 2. Land was sold for cash at book value. 3. Cash dividends of $58,100 were paid. 4. Net income for 2017 was $45,300. 5. Equipment was purchased for $95,300 cash. In addition, equipment costing $21,600 with a book value of $12,700 was sold for $5,900 cash. 6. Bonds were converted at face value by issuing 31,200 shares of $1 par value common stock.
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) The comparative balance sheet 148, 100345,400 ($8,200) 230.300 [31.2007 46,20083.000 260,00029 1121 499 19800
Explanation / Answer
Statement of cash flows for the year ended Dec.31,2017 using indirect method Cash flows from operating activities Net Income $45,300 Depreciation Expense $42,000 Loss on sale of equipment $6,800 Decrease in Accounts Receivables $18,700 Increase in Inventory -$2,500 Decrease in prepaid expenses $9,600 Increase in Accounts Payable $7,200 $81,800 Net Cash available from Operating activities $127,100 Cash flows from Investing activities Sale of land $33,800 Purchase of equipment -$95,300 Sale of equipment $5,900 Net cash used for Investing activities -$55,600 Cash flows from Financing activities Dividend paid -$58,100 Net Cash used for Financing activities -$58,100 Net Cash Surplus / (deficit) $13,400 Add : Beginning Cash balance 2016 $46,500 Ending Cash balance 2017 $59,900
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