Question

E5-5 (L03) (Preparation of a Corrected Balance Sheet) Uhura Company has decided to expand its operations. The book keeper recently completed the balance sheet presented below in order to obtain additional funds for expansion 242 Chapter 5 Balance Sheet and Statement of Cash Flows UHURA COMPANY BALANCE SHEET FOR THE YEAR ENDED 2017 $230,000 30. 400.00 140,000 520,000 160,000 175,000 0.00 90.000 12.000 Current assets Cash Accounts receivable (net) Inventory (lower-of-average-cost-or-market) Equity investments (trading at cost (fair value $120,000) Property, plant, and equipment Buildings (net) Equipment (net) Land held for future use Intangible assets Goodwill Cash sumender value of life insurance Prepaid expenses Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable Long-term liabilities Bonds payable Stockholders' equity Common stock, $1.00 par, authorized 400,000 shares, issued 290,000 Additional paid-in capital Retained earnings 135.00 125.000 82,000 29.000 53,000 500,000 290,000 160,000 Instructions Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the equipment, $105,000. The allowance for doubtful accounts has a balance of $17.000. The pension obligation is considered a long-term liability,

Answer 1

CONSTANTINE CAVAMANLIS INC. cash flow statement direct Method. Cash Flows from operating Activities Increase in Receivable ($3000) Increase in Accounts payable 5000 Income from Business (WNI) 50,000 Net Cash Provided By operating 59.000 Cash flows from Investing Activities 1 Purchase of Equiptment (17000) Ner cash used in Investing (17000) Cashflows from financing Activitig Payment of Dividend (23000) Increase in stock 90,000 Net cash used in Financing (3000) Begining Cash Balance 13000 closing Cash Balance U5,000 working Aloke 1. Income from Business Net Income Add's Depreciation Cash flow from Business. UUooo Gooo 50,000

CONSTANTINE CAVAMANLIS INC. cash flow statement direct Method. Cash Flows from operating Activities Increase in Receivable ($3000) Increase in Accounts payable 5000 Income from Business (WNI) 50,000 Net Cash Provided By operating 59.000 Cash flows from Investing Activities 1 Purchase of Equiptment (17000) Ner cash used in Investing (17000) Cashflows from financing Activitig Payment of Dividend (23000) Increase in stock 90,000 Net cash used in Financing (3000) Begining Cash Balance 13000 closing Cash Balance U5,000 working Aloke 1. Income from Business Net Income Add's Depreciation Cash flow from Business. UUooo Gooo 50,000

Juo UHURA COMPANY Revised Balance Sheet for the year ended 2017. Amount Amount $ 9,30,000 3,57,000 4,01,000 1,00,000 430,000 2,65,000 1, 75,000 80,000 90,000 19.000 24,80,000 Particulars Current Assets Cash Accounts Receivable Gross) Inventory Equy Investments Property, plant and equipment Building (Cost) Equipment (cost) Land held for future use to Intangible assets Goodwill Cash surrender value of life Insurance Prepaid Cxpenses Current Liabilities | Accounts Payable Accumulated Depreciation Building Equipment Notes Payable (due in next year) Rent Payable Premium on bonds ayable Allowance for Doubt hill JAccounts Long term Liabilite Bonds Payable Premium on bonds Payable Stock holder's equity Common stock $1.00 Par authorized 400,000 shares Issued 290,000 1,35,000 1,60,000 1,05,000 125,000 49,000 53000 IT000 5,00,000 89000 9,90,000 Additional Paid- in Capital Retained earnings 1,60,000 800.000 94,80,000

working notes 1. Net Accounts Receivable Add. Allowance for doubthull debt Gross Accounts Receivable 3,40,000 17,000 $ 3, 57,000 2. Cuet Add o Building Accumulated Depreciation Cross Building value 5,70,000 4,60.000 $7,30,000 o 3. Net | Add- Equipment on Accumulated Depreciation Cross Gquipment value 1,60,000 105,000 $ 9,65,000