The year-end financial statements of Acres company are presented below: Acres Company Balance Sheets December...

80.2K

Verified Solution

Question

Accounting

The year-end financial statements of Acres company are presented below:

Acres Company Balance Sheets December 31,

2010 2009 Increase/Decrease
Cash 9,000 8,000 1,000
A/R 15,000 18,000 (3,000)
Inv 44,000 45,000 (1,000)
Total Current Assets 68,000 71,000 (3,000)
Patent 16,000 0 16,000
LT invest in stock at cost 12,000 14,000 (2,000)
PP&E 82,000 68,000 14,000
Less:Accum Dep. (19,000) (18,000) (1,000)
Total Assets 159,000 135,000 24,000
A/P 15,000 12,000 3,000
Inc taxes payable, current 8,000 6,000 2,000

Current Maturities on serial

bonds Payable

1,000 1,000 0
Total Current Liab 24,000 19,000 5,000
Def. Income Taxes Payable, LT 4,000 0 4,000

Serial Bonds Payable,

5% maturing at annual intervals

beg, Jan 1, 2009

21,000 22,000 (1,000)
Premium on serials bonds payable 1,000 1,100 (100)
Notes Payable, LT 4,000 0 4,000
Common Stock 50,000 45,000 5,000
Cont. Capital in excess of par 5,000 3,900 1,100
Retained Earnings 50,000 44,000 6,000
Total Liab & SE 159,000 135,000 24,000

Acres Company Income Statement Year Ended December 31, 2010

Net Sales 100,000
Cost of Sales (57,000)
Gross Profit 43,000
Operating Exp.
Salaries 2,000
Depreciation 4,000
Patent Ammort 1,000
Interest 2,500
Income Taxes
Current 8,000
Deferred 4,000 21,500
21,500
Other Gains/Losses
Gain on Sale of Inv 3,000
Loss of Sale of Machinery (500)
Net Income 24,000

Additional Information:

1. During 2010 part of the long-term investment in the common stock of Campbell Company was sold for $5,000. The cost of these shares was $2,000 at acquisition.

2. During 2010 machinery was sold for proceeds of $1,500, the cost of this machinery was $5,000. Accumulated depreciation on this machinery to date of disposal was $3,000.

3. During 2010 Acres Company purchased various fixed assets. Of these acquisitions, $4,000 was financed by issuance of the long-term note payable, and the remainder was bought with cash.

4. Dividends paid for 2010 amounted to $18,000.

5. During 2010 Acres Company issued common stock with a par value of $5,000. This was the only transaction which involved capital stock during 2010.

6. During 2010 Acres Company purchased a patent for cash.

Questions:

What are significant financing and investing activites not affecting cash?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students