Chapter 11, Problem 30BE

Calculating certain information using the direct method (Learning Objective 4) 20-25 min.

Trudeau’s Marine, Inc., reported the following selected amounts in its financial statements for the year ended December 31, 2018:

Income Statement
		2018	2017
Net Sales.....................................		$768,500	$640,400
Cost of Goods Sold..................		459,800	384,200
Depreciation Expense.................		25,200	23,600
Other Operating Expenses..........		101,400	83,700
Income Tax Expense...........		44,600	37,200
Net Income.................................		137,500	111,700
Balance Sheet
		2018	2017
Cash and Cash Equivalents.........		$ 24,600	$ 15,500
Accounts Receivable..................		3,900	6,400
Inventories..................................		28,700	32,600
Property and Equipment. Net ....		288,100	246,500
Accounts Payable.......................		15,900	13,600
Accrued Liabilities.......................		5,400	7,300
Long-Term Liabilities..................		190,300	160,300
Common Stock...........................		85,000	65,000
Retained Earnings.......................		48,700	54,800

Requirement

1. 1. Determine the following for Trudeau’s Marine, Inc., during 2018:
   1. a. Collections from customers
   2. b. Payments for inventory
   3. c. Payments of other operating expenses
   4. d. Acquisitions of property and equipment; no sales were made during 2018
   5. e. Long-term borrowing, assuming Trudeau’s Marine. Inc., made no payments on long-term liabilities
   6. f. Proceeds from issuance of common stock
   7. g. Payment of cash dividends