APPLETON GROUP, INC. Income Statement Year Ended December 31, 2018 Net Sales Revenue $ 443,000 Cost of Goods Sold 205,800 Gross Profit 237,200 Operating Expenses: Salaries Expense $ 76,800 Depreciation Expense-Plant Assets 15,400 Other Operating Expenses 49,300 Total Operating Expenses 141,500 Operating Income 95,700 Other Income and (Expenses): Interest Revenue 11,600 Interest Expense (24,400) Total Other Income and (Expenses) (12,800) Net Income Before Income Taxes 82,900 Income Tax Expense 16,200 Net Income $ 66,700 APPLETON GROUP, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 14,700 $ 15,900 Accounts Receivable 42,200 43,900 Merchandise Inventory 97,600 93,900 Long-term Assets: Land 42,200 17,000 Plant Assets 121,950 110,750 Accumulated Depreciation-Plant Assets (20,250) (16,450) Total Assets $ 298,400 $ 265,000 Liabilities Current Liabilities: Accounts Payable $ 25,900 $ 26,900 Accrued Liabilities 24,500 22,700 Long-term Liabilities: Notes Payable 51,000 65,000 Total Liabilities 101,400 114,600 Stockholders' Equity Common Stock, no par 138,900 130,700 Retained Earnings 58,100 19,700 Total Stockholders' Equity 197,000 150,400 Total Liabilities and Stockholders' Equity $ 298,400 $ 265,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using a spreadsheet to prepare the statement of cash flows—indirect method

The 2018 comparative balance sheet and income statement of Appleton Group, Inc. follow. Appleton disposed of a plant asset at book value during 2018.

Prepare the spreadsheet for the 2018 statement of cash flows. Format cash flows from operating activities by the indirect method. A plant asset was disposed of for $0. The cost and accumulated depredation of the disposed asset was $11,600. There were no sales of land, no retirement of common stock, and no treasury stock transactions. Assume plant asset and land acquisitions were for cash.

APPLETON GROUP, INC.
Income Statement
Year Ended December 31, 2018
Net Sales Revenue
$ 443,000
Cost of Goods Sold
205,800
Gross Profit
237,200
Operating Expenses:
Salaries Expense
$ 76,800
Depreciation Expense-Plant Assets
15,400
Other Operating Expenses
49,300
Total Operating Expenses
141,500
Operating Income
95,700
Other Income and (Expenses):
Interest Revenue
11,600
Interest Expense
(24,400)
Total Other Income and (Expenses)
(12,800)
Net Income Before Income Taxes
82,900
Income Tax Expense
16,200
Net Income
$ 66,700

APPLETON GROUP, INC.
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Current Assets:
Cash
$ 14,700
$ 15,900
Accounts Receivable
42,200
43,900
Merchandise Inventory
97,600
93,900
Long-term Assets:
Land
42,200
17,000
Plant Assets
121,950
110,750
Accumulated Depreciation-Plant Assets
(20,250)
(16,450)
Total Assets
$ 298,400
$ 265,000
Liabilities
Current Liabilities:
Accounts Payable
$ 25,900
$ 26,900
Accrued Liabilities
24,500
22,700
Long-term Liabilities:
Notes Payable
51,000
65,000
Total Liabilities
101,400
114,600
Stockholders' Equity
Common Stock, no par
138,900
130,700
Retained Earnings
58,100
19,700
Total Stockholders' Equity
197,000
150,400
Total Liabilities and Stockholders' Equity
$ 298,400
$ 265,000

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