Problem

Complete the balance sheet using cash flow data Following is a partially completed balance...

Complete the balance sheet using cash flow data Following is a partially completed balance sheet for Epsico, Inc., at December 31, 2010, together with comparative data for the year ended December 31, 2009. From the statement of cash flows for the year ended December 31, 2010, you determine the following:

Net income for the year ended December 31, 2010, was $26.

Dividends paid during the year ended December 31, 2010, were $8.

Cash increased $8 during the year ended December 31, 2010.

The cost of new equipment acquired during 2010 was $15; no equipment was

disposed of.

There were no transactions affecting the land account during 2010, but it is estimated that the fair market value of the land at December 31, 2010, is $42.

Required:

Complete the balance sheet at December 31, 2010.

EPSICO, INC.

Balance Sheets

December 31, , 2010 and 2009

 

2010

2009

 

2010

2009

Assets

 

 

Liabilities and Owners’

Equity

 

Current assets:

 

 

Current liabilities:

 

 

Cash

$

$ 30

Note payable

$ 49

$ 40

Accounts receivable

126

120

Accounts payable

123

110

Inventory

241

230

 

 

 

Total current assets

$

$380

Total current liabilities

$172

$150

 

 

 

Long-term debt

 

80

Land

$

$ 25

Total liabilities

$

$230

Equipment

 

375

Owners’ Equity

 

 

Less: Accumulated

 

 

Common stock

$200

$200

depreciation

(180)

(160)

Retained earnings

 

190

Total land&equipment

$

$240

Total owners’ equity

$

$390

 

 

 

Total liabilities and

 

 

Total assets

$

$620

owners’ equity

$

$620

 

 

 

 

 

 

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