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SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500

SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....
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Preparing the statement of cash flows—indirect method with non-cash transactions

The 2018 income statement and comparative balance sheet of Sweet Valley Inc follow:

Additionally, Sweet Valley purchased land of $20,900 by financing it 100% with long-term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $13,240. Plant asset was acquired for cash.

Requirements

  1. Prepare the 2018 statement of cash flows, formatting operating activities by the indirect method.
  2. How will what you learned in this problem help you evaluate an investment?
SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500
Transcribed Image Text:SWEET VALLEY, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 26,300 $ 15,400 Accounts Receivable 26,400 25,100 Merchandise Inventory 79,300 91,300 Long-term Assets: Land 34,900 14,000 Plant Assets 115,790 108,330 Accumulated Depreciation-Plant Assets (19,890) (18,630) Total Assets $ 262,800 $ 235,500 Liabilities Current Liabilities: Accounts Payable $ 35,600 $ 30,100 Accrued Liabilities 28,900 30,800 Long-term Liabilities: Notes Payable 78,000 105,000 Total Liabilities 142,500 165,900 Stockholders' Equity Common Stock, no par 88,200 64,800 Retained Earnings 32,100 4,800 Total Stockholders' Equity 120,300 69,600 Total Liabilities and Stockholders' Equity $ 262,800 S 235,500
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