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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
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).)

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