Problem

Complete balance sheet and prepare a statement of changes in retained earnings Following i...

Complete balance sheet and prepare a statement of changes in retained earnings Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2011. Also shown is a partially completed comparative balance sheet as of December 31, 2011 and 2010:

HARTFORD, INC.

Statement of Cash Flows

For the Year Ended December 31, 2011

Cash Flows from Operating Activities:

 

Net income

$ 9,000

Add (deduct) items not affecting cash:

 

Depreciation expense

45,000

Decrease in accounts receivable

23,000

Increase in inventory

(7,000)

Increase in notes payable

12,000

Decrease in accounts payable 

  (6,000)

Net cash provided by operating activities

  $ 76,000

Cash Flows from Investing Activities:

 

Purchase of equipment

$(50,000)

Purchase of buildings

  (48,000)

Net cash used by investing activities

  $(98,000)

Cash Flows from Financing Activities:

 

Proceeds from short-term debt

5,000

Cash used for retirement of long-term debt

$(25,000)

Proceeds from issuance of common stock

10,000

Payment of cash dividends on common stock 

  (3,000)

Net cash used by financing activities

  $(13,000)

Net decrease in cash for the year

  $(35,000)

 

HARTFORD, INC.

Comparative Balance Sheets

At December 31, 2011 and 2010

 

2011

2010

Assets

 

 

Current assets:

 

 

Cash

$

$ 88,000

Accounts receivable

 

73,000

Inventory

56,000

 

Total current assets

$

$

Land

$

$ 40,000

Buildings and equipment

260,000

 

Less: Accumulated depreciation

 

(123,000)

Total land, buildings, and equipment

$

$

Total assets

$

$

Liabilities

 

 

Current liabilities:

 

 

Accounts payable

$

$ 29,000

Short-term debt

32,000

 

Notes payable

 

36,000

Total current liabilities

$

$

Long-term debt

$ 85,000

$

Owners’ Equity

 

 

Common stock

$ 40,000

$

Retained earnings

 

 

Total owners’ equity

$

$

Total liabilities and owners’ equity 

$

$

Required:

a. Complete the December 31, 2011 and 2010, balance sheets.


b. Prepare a statement of changes in retained earnings for the year ended December 31, 2011.

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search