| | | Fred Slezak presented the following comparative balance sheet: | | | FRED SLEZAK CORPORATION | | | | Comparative Balance Sheet | | | | December 31, 20X5 and 20X4 | | | | | | | | | | | | | | | Assets | | 20X5 | | 20X4 | | | | | | Current assets | | | | | | | | | | Cash | | $ 664,000 | | $ 9,000 | | | | | | Accounts receivable | | 375,000 | | 345,000 | | | | | | Inventories | | 150,000 | | 160,000 | | | | | | Prepaid expenses | | 35,000 | | 25,000 | | | | | | Total current assets | | $ 1,224,000 | | $ 539,000 | | | | | | Property, plant, & equipment | | | | | | | | | | Land | | $ 300,000 | | $ 400,000 | | | | | | Building | | 700,000 | | 700,000 | | | | | | Equipment | | 530,000 | | 450,000 | | | | | | | | $ 1,530,000 | | $ 1,550,000 | | | | | | Less: Accumulated depreciation | | (300,000) | | (270,000) | | | | | | Total property, plant, & equipment | | $ 1,230,000 | | $ 1,280,000 | | | | | | Total assets | | $ 2,454,000 | | $ 1,819,000 | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | Current liabilities | | | | | | | | | | Accounts payable | | $ 112,000 | | $ 119,000 | | | | | | Interest payable | | 2,000 | | - | | | | | | Total current liabilities | | $ 114,000 | | $ 119,000 | | | | | | Long-term liabilities | | | | | | | | | | Long-term note payable | | 80,000 | | - | | | | | | Total liabilities | | $ 194,000 | | $ 119,000 | | | | | | | | | | | | | | | | Stockholders' equity | | | | | | | | | | Common stock ($1 par) | | $ 700,000 | | $ 600,000 | | | | | | Paid-in capital in excess of par | | 800,000 | | 400,000 | | | | | | Retained earnings | | 760,000 | | 700,000 | | | | | | Total stockholders' equity | | $ 2,260,000 | | $ 1,700,000 | | | | | | Total liabilities and equity | | $ 2,454,000 | | $ 1,819,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Additional information about transactions and events occurring in 20X5 follows: | | | | | | | | | | | | | Dividends of $55,000 were declared and paid. | | | | | | | Accounts payable and accounts receivable relate solely to purchases and sales of inventory. Prepaid items related only to advertising expenses. | | | | The decrease in land resulted from the sale of a parcel at a $45,000 loss. No land was purchased during the year. Equipment was purchased during the year in exchange for a promissory note payable. No equipment was sold. | | | | The increase in paid-in capital resulted from issuing additional shares for cash. | | | | The income statement for the year ending December 31, 20X5, included the following key amounts: | | | | | | | | | | | | | | | Sales | | $ 2,000,000 | | | | | | | | Cost of goods sold | | 1,200,000 | | | | | | | | Salaries expense | | 400,000 | | | | | | | | Advertising expense | | 150,000 | | | | | | | | Depreciation expense | | 30,000 | | | | | | | | Utilities expense | | 15,000 | | | | | | | | Interest expense | | 5,000 | | | | | | | | Loss on sale of land | | 45,000 | | | | | | | | Income tax expense | | 40,000 | | | | | | | | Net income | | 115,000 | | | | | | | | | | | | | | | | | | | | | | | | | | Prepare Fred Slezak's statement of cash flows for the year ending 20X5. Use the indirect approach, and include required supplemental information about cash paid for interest and taxes. | | | | | |
