Declan's Designs Balance Sheet Declan's Designs Income Statement ASSETS 12/31/2021 12/31/2022 For the Year Ending Current Assets Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory 12/31/2022 $90,000 97,000 400,000 587,000 $294,000 101,000 475,000 870,000 Sales Revenue CGS $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 Total Current Assets Gross Margin SG&A Operating Income Interest Expense Loss on Sale of PPE Pre-Tax Income Income Tax Expense Net Income PPE, Net Goodwill, Net 62,000 600,000 $1,249,000 70,000 600,000 $1,540,000 Total Assets LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable Interest Payable Dividends Payable Total Current Liabilities 26,000 3,000 20,000 49,000 17,000 5,000 10,000 32,000 Additional Information regarding Declan's Designs' 12/31/22 financials: Mortgage Payable Long-Term Bank Loan Total Liabilities 500,000 200,000 732,000 PROPERTY, PLANT & EQUIPMENT PPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning the year and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which is included in SG&A. New PPE was bought during the year for $22,000 (in cash). 500,000 549.000 Shareholder's Equity Preferred Stock Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Stater Common Stock Hint #1: The most recent year is not always in the left column. Additional Paid in Capital Retained Earnings Total Shareholder's Equity 8,000 54,000 638,000 700,000 10,000 60,000 738,000 808,000 Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall g PPE less accumulated depreciation equals net PPE. Hint #3: Never "plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE (capital expenditures) from the annual decrease in gross PPE (sale of PPE). Total Liabilities &Shareholders' Equity $1,249,000 $1,540,000
Declan's Designs Balance Sheet Declan's Designs Income Statement ASSETS 12/31/2021 12/31/2022 For the Year Ending Current Assets Cash and Cash Equivalents Accounts Receivable, Net Merchandise Inventory 12/31/2022 $90,000 97,000 400,000 587,000 $294,000 101,000 475,000 870,000 Sales Revenue CGS $225,000 (16,000) 209,000 (22,000) 187,000 (12,000) (5,000) 170,000 (7,000) $163,000 Total Current Assets Gross Margin SG&A Operating Income Interest Expense Loss on Sale of PPE Pre-Tax Income Income Tax Expense Net Income PPE, Net Goodwill, Net 62,000 600,000 $1,249,000 70,000 600,000 $1,540,000 Total Assets LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable Interest Payable Dividends Payable Total Current Liabilities 26,000 3,000 20,000 49,000 17,000 5,000 10,000 32,000 Additional Information regarding Declan's Designs' 12/31/22 financials: Mortgage Payable Long-Term Bank Loan Total Liabilities 500,000 200,000 732,000 PROPERTY, PLANT & EQUIPMENT PPE is shown net accumulated depreciation. Accumulated depreciation was $18,000 at the beginning the year and $20,000 at the end of the year. Depreciation expense for the year was $3,000, which is included in SG&A. New PPE was bought during the year for $22,000 (in cash). 500,000 549.000 Shareholder's Equity Preferred Stock Note: You may use the worksheet provided on the last page to help you prepare the Cash Flow Stater Common Stock Hint #1: The most recent year is not always in the left column. Additional Paid in Capital Retained Earnings Total Shareholder's Equity 8,000 54,000 638,000 700,000 10,000 60,000 738,000 808,000 Hint #2: Evaluate changes in gross PPE separate from changes in accumulated depreciation. Recall g PPE less accumulated depreciation equals net PPE. Hint #3: Never "plug" the annual change in gross PPE. Separately evaluate the increase in gross PPE (capital expenditures) from the annual decrease in gross PPE (sale of PPE). Total Liabilities &Shareholders' Equity $1,249,000 $1,540,000
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.2MBA: Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on...
Related questions
Question
What is Declan's Designs' 2022 Cash Flows from Financing Activities?
|
Increase of $135,000 |
|
Increase of $200,000 |
|
Decrease of $135,000 |
|
Decrease of $73,000 |
Expert Solution
Answer
Declan Design | ||
Cash Flow Statement (Partial) | ||
For the year ended December 31, 2022 | ||
Amount (In $) | Amount (In $) | |
Cash Flow from Financing Activities | ||
Dividends Paid | (73,000) | |
Issue of Common Stock (10,000 + 60,000 - 8,000 - 54,000) | 8,000 | |
Cash inflows from fresh Long-term Bank Loan | 2,00,000 | |
Net cash flow from Financing activities | 1,35,000 |
Final Answer: Cash flows from Financing Activities is Increase of 135,000.
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