The following changes took place last year in Pavolik Company’s balance sheet accounts:
Asset and Contra-Asset Accounts | Liabilities and Stockholders' Equity Accounts | ||||||
Cash | $ | 7 | D | Accounts payable | $ | 23 | I |
Accounts receivable | $ | 11 | I | Accrued liabilities | $ | 11 | D |
Inventory | $ | 32 | D | Income taxes payable | $ | 16 | I |
Prepaid expenses | $ | 6 | I | Bonds payable | $ | 100 | I |
Long-term investments | $ | 8 | D | Common stock | $ | 44 | D |
Property, plant, and equipment | $ | 200 | I | Retained earnings | $ | 43 | I |
Accumulated depreciation | $ | 43 | I | ||||
D = Decrease; I = Increase.
Long-term investments that cost the company $8 were sold during the year for $20 and land that cost $19 was sold for $11. In addition, the company declared and paid $5 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.
The company’s income statement for the year follows:
Sales | $ | 630 | |||||
Cost of goods sold | 264 | ||||||
Gross margin | 366 | ||||||
Selling and administrative expenses | 290 | ||||||
Net operating income | 76 | ||||||
Nonoperating items: | |||||||
Loss on sale of land | $ | (8 | ) | ||||
Gain on sale of investments | 12 | 4 | |||||
Income before taxes | 80 | ||||||
Income taxes | 32 | ||||||
Net income | $ | 48 | |||||
The company’s beginning cash balance was $102 and its ending balance was $95.
Required:
Prepare a statement of cash flows for the year.
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The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 35 D Accounts payable $ 107 I Accounts receivable $ 39 I Accrued liabilities $ 39 D Inventory $ 88 D Income taxes payable $ 44 I Prepaid expenses $ 34 I Bonds payable $ 324 I Long-term investments $ 36 D Common stock $ 156 D Property, plant, and equipment $ 620 I Retained earnings...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash and cash equivalents $ 12 D Accounts payable $ 38 I Accounts receivable $ 16 I Accrued liabilities $ 16 D Inventory $ 42 D Income taxes payable $ 21 I Prepaid expenses $ 11 I Bonds payable $ 140 I Long-term investments $ 13 D Common stock $ 64 D Property, plant, and equipment $ 275...
The following changes took place last year in Pavolik Company’s
balance sheet accounts:
Asset and Contra-Asset Accounts
Liabilities and Stockholders' Equity Accounts
Cash and cash equivalents
$
21
D
Accounts payable
$
65
I
Accounts receivable
$
25
I
Accrued liabilities
$
25
D
Inventory
$
60
D
Income taxes payable
$
30
I
Prepaid expenses
$
20
I
Bonds payable
$
212
I
Long-term investments
$
22
D
Common stock
$
100
D
Property, plant, and equipment
$
410...
The following changes took place last year in Pavolik Company’s
balance sheet accounts:
Asset and Contra-Asset Accounts
Liabilities and Stockholders' Equity Accounts
Cash and cash equivalents
$
21
D
Accounts payable
$
65
I
Accounts receivable
$
25
I
Accrued liabilities
$
25
D
Inventory
$
60
D
Income taxes payable
$
30
I
Prepaid expenses
$
20
I
Bonds payable
$
212
I
Long-term investments
$
22
D
Common stock
$
100
D
Property, plant, and equipment
$
410...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 16 D Accounts payable $ 46 I Accounts receivable $ 165 I Accrued liabilities $ 4 D Inventory $ 70 D Income taxes payable $ 19 I Prepaid expenses $ 20 I Bonds payable $ 128 I Long-term investments $ 17 D Common stock $ 47 D Property, plant, and equipment $ 163 I Retained earnings...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 9 D Accounts payable $ 29 I Accounts receivable $ 13 I Accrued liabilities $ 13 D Inventory $ 36 D Income taxes payable $ 18 I Prepaid expenses $ 8 I Bonds payable $ 116 I Long-term investments $ 10 D Common stock $ 52 D Property, plant, and equipment $ 230 I Retained earnings...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 8 D Accounts payable $ 26 I Accounts receivable $ 12 I Accrued liabilities $ 12 D Inventory $ 34 D Income taxes payable $ 17 I Prepaid expenses $ 7 I Bonds payable $ 108 I Long-term investments $ 9 D Common stock $ 48 D Property, plant, and equipment $ 215 I Retained earnings...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 29 D Accounts payable $ 89 I Accounts receivable $ 33 I Accrued liabilities $ 33 D Inventory $ 76 D Income taxes payable $ 38 I Prepaid expenses $ 28 I Bonds payable $ 276 I Long-term investments $ 30 D Common stock $ 132 D Property, plant, and equipment $ 530 I Retained earnings...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 10 D Accounts payable $ 40 I Accounts receivable $ 135 I Accrued liabilities $ 4 D Inventory $ 70 D Income taxes payable $ 13 I Prepaid expenses $ 14 I Bonds payable $ 140 I Long-term investments $ 11 D Common stock $ 65 D Property, plant, and equipment $ 175 I Retained earnings...
The following changes took place last year in Pavolik Company’s balance sheet accounts: Assest and Contra-Asset Account Liabilities and Stockholder's Equity Cash $16 D AP $50 I AR $20 I Accured libilities $20 D Inventory 50 I Income taxes payable $25 I Prepaid expenses $15 I Bonds Payable $172 I Long-Term Investments $17 D Common Stock $80 D Property, plant and equipment $335 I Retained Earnings $70 I Accumilated depreciation $70 I D = Decrease; I = Increase. ong-term investments...