The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) 2016 2015 Assets Cash $ 125 $ 110 Accounts receivable 151 155 Short-term investment 56 20 Inventory 155 150 Land 114 140 Buildings and equipment 740 560 Less: Accumulated depreciation (211) (155) $ 1,130 $ 980 Liabilities Accounts payable $ 46 $ 51 Salaries payable 4 7 Interest payable 5 4 Income tax payable 9 13 Notes payable 0 36 Bonds payable 332 260 Shareholders' Equity Common stock 435 360 Paid-in capital—excess of par 200 180 Retained earnings 99 69 $ 1,130 $ 980 WRIGHT COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s) Revenues: Sales revenue $ 640 Expenses: Cost of goods sold $ 290 Salaries expense 95 Depreciation expense 56 Interest expense 19 Loss on sale of land 4 Income tax expense 96 560 Net income $ 80 Additional information from the accounting records: a. Land that originally cost $26,000 was sold for $22,000. b. The common stock of Microsoft Corporation was purchased for $36,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $180,000 cash. d. A $36,000 note was paid at maturity on January 1. e. On January 1, 2016, bonds were sold at their $72,000 face value. f. Common stock ($75,000 par) was sold for $95,000. g. Net income was $80,000 and cash dividends of $50,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 5,000 should be entered as 5).)
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) 2016 2015 Assets Cash $ 125 $ 110 Accounts receivable 151 155 Short-term investment 56 20 Inventory 155 150 Land 114 140 Buildings and equipment 740 560 Less: Accumulated depreciation (211) (155) $ 1,130 $ 980 Liabilities Accounts payable $ 46 $ 51 Salaries payable 4 7 Interest payable 5 4 Income tax payable 9 13 Notes payable 0 36 Bonds payable 332 260 Shareholders' Equity Common stock 435 360 Paid-in capital—excess of par 200 180 Retained earnings 99 69 $ 1,130 $ 980 WRIGHT COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s) Revenues: Sales revenue $ 640 Expenses: Cost of goods sold $ 290 Salaries expense 95 Depreciation expense 56 Interest expense 19 Loss on sale of land 4 Income tax expense 96 560 Net income $ 80 Additional information from the accounting records: a. Land that originally cost $26,000 was sold for $22,000. b. The common stock of Microsoft Corporation was purchased for $36,000 as a short-term investment not classified as a cash equivalent. c. New equipment was purchased for $180,000 cash. d. A $36,000 note was paid at maturity on January 1. e. On January 1, 2016, bonds were sold at their $72,000 face value. f. Common stock ($75,000 par) was sold for $95,000. g. Net income was $80,000 and cash dividends of $50,000 were paid to shareholders. Required: Prepare the statement of cash flows of Wright Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 5,000 should be entered as 5).)
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.10E
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Question
The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also. |
WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s) |
||||
2016 | 2015 | |||
Assets | ||||
Cash | $ | 125 | $ | 110 |
|
151 | 155 | ||
Short-term investment | 56 | 20 | ||
Inventory | 155 | 150 | ||
Land | 114 | 140 | ||
Buildings and equipment | 740 | 560 | ||
Less: Accumulated depreciation | (211) | (155) | ||
$ | 1,130 | $ | 980 | |
Liabilities | ||||
Accounts payable | $ | 46 | $ | 51 |
Salaries payable | 4 | 7 | ||
Interest payable | 5 | 4 | ||
Income tax payable | 9 | 13 | ||
Notes payable | 0 | 36 | ||
Bonds payable | 332 | 260 | ||
Shareholders' Equity | ||||
Common stock | 435 | 360 | ||
Paid-in capital—excess of par | 200 | 180 | ||
|
99 | 69 | ||
$ | 1,130 | $ | 980 | |
WRIGHT COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s) |
||||
Revenues: | ||||
Sales revenue | $ | 640 | ||
Expenses: | ||||
Cost of goods sold | $ | 290 | ||
Salaries expense | 95 | |||
Depreciation expense | 56 | |||
Interest expense | 19 | |||
Loss on sale of land | 4 | |||
Income tax expense | 96 | 560 | ||
Net income | $ | 80 | ||
Additional information from the accounting records: | |
a. | Land that originally cost $26,000 was sold for $22,000. |
b. | The common stock of Microsoft Corporation was purchased for $36,000 as a short-term investment not classified as a cash equivalent. |
c. | New equipment was purchased for $180,000 cash. |
d. | A $36,000 note was paid at maturity on January 1. |
e. | On January 1, 2016, bonds were sold at their $72,000 face value. |
f. | Common stock ($75,000 par) was sold for $95,000. |
g. | Net income was $80,000 and cash dividends of $50,000 were paid to shareholders. |
Required: |
Prepare the statement of |
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