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Statement of
Norwich Manufacturing, Inc. Balance Sheets At December 31 |
||
Assets | Current Year | Prior Year |
Current Assets | ||
Cash | $ 45,000 | $ 22,000 |
Available-for-Sale Debt Investments | 58,000 | 82,000 |
95,000 | 55,000 | |
Merchandise Inventory | 135,000 | 95,000 |
Total Current Assets | $ 333,000 | $254,000 |
Norwich Manufacturing, Inc. Balance Sheets At December 31 |
||
Current Year | Prior Year | |
Noncurrent Assets | ||
Investments in Affiliate Companies | $ 265,000 | $ 100,500 |
Property. Plant, and Equipment - net | 1,364,500 | 1,530,500 |
Intangible Assets - net | 87,500 | 125,000 |
Total Noncurrent Assets | $ 1,717,000 | $1,756,000 |
Total Assets | $2,050,000 | $2,010,000 |
Liabilities | ||
Current Liabilities |
Current Portion of Long-Term Debt | $ 25,000 | $ 65,800 |
Accounts Payable | 187,000 | 128,500 |
Dividends Payable | 75,000 | 55,000 |
Income Taxes Payable | 65,800 | 58,500 |
Total Current Liabilities | $ 352,800 | $ 307,800 |
Noncurrent Liabilities | ||
Bonds Payable | $ 400,000 | $ 400,000 |
Less: Discount on Bonds | (128,500) | (145,000) |
Notes Payable | 225,500 | 225,000 |
62,500 | 72,500 | |
Net Obligations under Pension Plans | 80,000 | 60,000 |
Total Noncurrent Liabilities | $ 639,500 | $ 612,500 |
Total Liabilities | $ 992,300 | $ 920,300 |
Shareholders' Equity | ||
Common Stock. $1 par value | $ 135,000 | $ 135,000 |
Additional Paid-in Capital in Excess of Par - Common | 351,500 | 351,500 |
Additional Paid-in Capital - Stock Options | 16,500 | 0 |
685,000 | 523,700 | |
Accumulated Other Comprehensive Income | (130,300) | 79,500 |
Total Shareholders' Equity | $ 1,057,700 | $1,089,700 |
Total Liabilities and Shareholders' Equity | $2,050,000 | $2,010,000 |
Norwich Manufacturing, Inc. Income Statement For the Current Year Ended December 31 |
|
Sales | $2,433,244 |
Cost of Goods Sold | 1,459,946 |
Gross Profit | $ 973,298 |
Selling, General, and Administrative Expenses | $ 59,800 |
Pension Expense | 260,510 |
Bad Debt Expense | 1,650 |
Depreciation Expense | 19,470 |
Amortization Expense | 7,425 |
Total Operating Expenses | $ 348,855 |
Operating Income | $ 624,443 |
Interest Expense | $ (55,110) |
Investment Income (includes gain on sale) | 55,000 |
Equity Earnings from Affiliate Companies | 164,500 |
Income before Tax | $ 788,833 |
Income Tax Expense | (301,873) |
Net Income | $ 486,960 |
Additional information
- Norwich sold available-for-sale investments that had been acquired for $55,000 at a gain of $40, 500 It included this gain in investment income on the income statement.
- The company acquired additional shares as investments to be earned at fair value It accounted for all investments except for investments carried under the equity method as available-for-sale securities It recorded a $9, 000 unrealized loss for the current year.
- It reported accounts receivable net of the allowance for
bad debts - It sold equipment at book value.
- It did not increase its percentage ownership of its equity investee (affiliate company)
- It sold one of its franchises at book value
- It signed a $100,000 promissory note issued by an equipment dealer in the acquisition of a plant asset
- It did not borrow additional cash funds during the year
Required
Prepare Norwich Manufacturing s cash flow statement for the current year using the indirect method Present required disclosures.
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