Question

Given is the Income Statement for the year ended December 31, 20XX, Statement of Retained Earnings for the year ended December 31, 20XX and Comparative Balance Sheets for 20XW and 20XX of Maris Corporation:

Maris Corporation Income Statement Year Ended December 31, 20XX
Sales	$4,700,000
Cost of goods sold	2,925,000
Gross profits	1,775,000
Selling and administrative expense	630,000
Amortization expense	290,000
Operating income	855,000
Interest expense	52,000
Earnings before taxes	803,000
Taxes	390,000
Earnings after taxes	413,000
Preferred stock dividends	50,000
Earnings available to common shareholders	$363,000
Shares outstanding	226,875
Earnings per share	$1.60

  

Statement of Retained Earnings For the Year Ended December 31, 20XX
Retained earnings, balance, January 1, 20XX	$880,000
Add: Earnings available to common shareholders, 20XX	363,000
Deduct: Cash dividends declared and paid in 20XX	200,000
Retained earnings, balance, December 31, 20XX	$1,043,000

  

Comparative Balance Sheets For 20XX and 20XW
	December 31, 20XX			December 31, 20XW
Assets
Current assets:
Cash		$120,000			$108,000
Accounts receivable (net)		630,000			618,000
Inventory		570,000			551,000
Prepaid expenses		38,000			76,000
Total current assets		1,358,000			1,353,000
Investments (long-term securities)		100,000			105,000
Plant and equipment	2,400,000			1,800,000
Less: Accumulated depreciation	1,047,000			757,000
Net plant and equipment		1,353,000			1,043,000
Total assets		$2,811,000			$2,501,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$455,000			$341,000
Notes payable		500,000			500,000
Accrued expenses		43,000			70,000
Total current liabilities		998,000			911,000
Long-term liabilities:
Bonds payable, 20XY		160,000			100,000
Total liabilities		1,158,000			1,011,000
Shareholders’ equity:
Preferred stock		110,000			110,000
Common stock		500,000			500,000
Retained earnings		1,043,000			880,000
Total shareholders’ equity		1,653,000			1,490,000
Total liabilities and shareholders’ equity		$2,811,000			$2,501,000

  

Prepare a statement of cash flows for the Maris Corporation. (Amounts to be deducted should be indicated with a minus sign. Omit $ sign in your response.)

		$
		$

Answer 1

Ans: MARIS CORPORATON Statement of Cash flows for the Year Ended Desember 31, 2014 _$| Operating Activities b Net Income Add ': items not requiring an outleyoglasa de Amortization $290,000 Cash flow from operations $413,000 $290.000 $703,0To Increase in Accounts deceivables 1. $12.000) Increase in Inventory 1($19.000) Decrease in frepaid expenses $38,000 Increase in Accounts payable & 114,000 Decreese. in Accoued Expenses ($27,000 $94,000 Net Change in non-Cash working Capital Cash Provided by Operating Activities (A) $797,000 @9 Investing Activdich's Decrease in Investment $5000 Increase in plane s Equipment ($600,000)|$595.000) Cash used in Investing Actividties (8) 1$595, O-ov) Col financing Activities Increase in Bond payable $60,000 Preferreel Stock Dividend paid_ C# 50, ovo) Common stock dividend paid C$ 00, 000) I Cash Used in financing Activities (1) $ 190,000)

$12,000 Net Increase / bereare in cash CAIBH) Add + Beginning Balance of cash I anding Balance of cash $108.coo $120.000
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