Question

Complete the SOE and worksheet using the information below. Change Excess of Market over Book Values (Market - Book) Item: 12/31/2018 Machinery and Equipment -$10,000 Land $0 Buildings $0 Marketable Securities $13,000 Other Investments (local brewery) $20,000 12/31/2019 $5,000 $5,000 $10,000 $5,000 $22,000 Selected Account Balances: Current Deferred Taxes Non-current Deferred Taxes Non-real estate long-term loan balance Total Equity $2,492 $3,000 $165,000 $232,009 $1,359 $12,601 $220,000 $323,041 $91,032 Other Information: 2019 Net Income for Illini Tap was: $151,633 No capital contributions or distributions were made in 2019

Answer 1

Complete the SOE and worksheet using the information below. Excess of Market over Book Values (Market - Book) Item: 12/31/2018 Machinery and Equipment -$10,000 Land $0 Buildings $0 Marketable Securities $13,000 Other Investments (local brewery) $20,000 12/31/2019 $5,000 $5,000 $10,000 $5,000 $22,000 Change $15,000 $5,000 $10,000 -$8,000 -$22,000 Selected Account Balances: Current Deferred Taxes Non-current Deferred Taxes Non-real estate long-term loan balance Total Equity $2,492 $3,000 $165,000 $232,009 $1,359 $12,601 $220,000 $323,041 -$1,133 $9,601 $55,000 $91,032 Other Information: 2019 Net Income for Illini Tap was: $151,633 No capital contributions or distributions were made in 2019 Item Subtotal Total Beginning of period owner equity $ 232,009 a b 151,633 44,601 с Changes in contributed capital and retained earnings: Net Income Withdrawals owner/family living Capital Contributions: Debt forgiveness Gifts Inheritances Capital Distributions: Dividends + 0 d + 0 e + f Ille belle g Gifts 0 h Inheritances i Total change in contributed capital and retained earnings $ 107,032 >$ 107,032 j $ k 1 -8,000 -22,000 15,000 5,000 10,000 m Change in market valuation (market value over cost/basis) of: Marketable securities Other business investments Machinery and equipment Land Buildings Other capital assets Personal assets Personal liabilities Total change in market valuation n o p 9 r $ 0 S Change in noncurrent portion of deferred taxes t -9,601 >$ u Total change in valuation equity Total Change in Owner Equity End of period owner equity -9,601 91,032 323,041 V W Section on CFS Notes a 2019 Transactions Land and building purchase Land Cost Building Cost Down Payment Remainder financed on 30-year loan 140,000 300,000 110,000 ??? 330,000 b Bar Equipment Purchase Cost of new equipment Down Payment Remainder financed on 5-year loan 85,000 15,000 ??? 70,000 с Sold equipment Sale price Tax basis of equipment sold 15,000 20,000 d Investment in local brewery Original cost Current value Dividends received in 2019 50,000 72,000 5,000 e f g $44,601 h Other items: Principal paid on short-term loans Interest paid on short-term loans Family Living Withdrawals Operating Total Cash Sales Principal paid on long-term loans Operating Total Cash Operating Expenses Interest paid on long-term loans in cash Cash Tax Expenses 16,000 2,500 ??? 910,000 15,000 650,000 14,500 48,000 Operating inflow i Operating outflow k 1 Beginning Cash Balance 113,000 Beginning Cash Balance Subtotai I otai 910,000 910,000 >> $ 910,000 650,000 item CASH FLOWS FROM OPERATING ACTIVITIES Inflows Cash received from business sales/receipts Cash received from net nonbusiness income Total cash inflows from operating activities Outflows Cash paid for operating expenses Cash paid for operating & s.t. loan interest Cash paid for long-term loan interest Cash paid for purchased inputs Cash paid for other items purchased for resale Cash paid for income and social security taxes Cash withdrawals for owner/family living Total cash outflows from operating activities Net cash flows provided by operating activities 650,000 >> $ 650,000 $ 260,000 $15,000 $5,000 CASH FLOWS FROM INVESTING ACTIVITIES Inflows Cash received on sale of machinery/equipment/real estate Cash received from sale of internally transferred capital Cash received from withdrawals of savings Cash received from sale of personal assets/retirement accts. Total cash inflows from investing activities Outflows Cash paid to purchase machinery/equipment/real estate Cash paid to purchased productive capital items Cash paid for deposits to savings accounts Cash paid to purchase marketable securities Cash paid to purchase personal assets/retirement accts. Total cash outflows from investing activities $20,000 $20,000 $125,000 $50,000 $175,000 $175,000 Net cash flows provided by investing activities -$155,000 $0 >> $0 CASH FLOWS FROM FINANCING ACTIVITIES Inflows Proceeds from operating loans and short-term notes Proceeds from term debt financing Cash received from capital contributions Total cash inflows from financing activities Outflows Cash repayment of operating and short-term loans Cash repayment of term debt-scheduled Cash repayment of term debt-unscheduled Cash repayment of capital leases Cash payments of dividends and other capital distributions Total cash outflows from financing activities Net cash flows provided by financing activities $18,500 $18,500 $18,500 -$18,500 Net increase (decrease) in cash flows Beginning of year cash balance End of year cash balance $ 86,500 $ 113,000 $ 199,500