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