Cruz, Inc.

Comparative Balance Sheets Income Statement

2017 2016 Increase / (Decrease)
Assets Sales $501,300.00
Cash $97,400.00 $24,400.00 73,000.00 Cost of goods sold 322,600.00
Accounts receivable, net 41,800.00 51,700.00 (9,900.00) Gross Profit 178,700.00
Inventory 87,400.00 97,100.00 (9,700.00) Operating expense
Prepaid expenses 5,500.00 4,400.00 1,100.00 Depreciation expense $38,600.00
Total current asses 232,100.00 177,600.00 54,500.00 Other expenses 91,600.00 130,200.00
Furniture 111,000.00 124,700.00 (13,700.00) Income before taxes 48,500.00
Accum. depreciation - furniture (17,200.00) (9,400.00) (7,800.00) Income taxes expense 17,700.00
Total assets $325,900.00 $292,900.00 33,000.00 Net income $30,800.00

Liab & Equity

Accounts payable $15,400.00 $21,500.00 (6,100.00)
Wage payable 9,200.00 4,900.00 4,300.00
Income taxes payable 1,500.00 2,700.00 (1,200.00)
Total current liabilities 26,100.00 29,100.00 (3,000.00)
Notes payable (long-term) 30,900.00 71,600.00 (40,700.00)
Total liabilities 57,000.00 100,700.00 (43,700.00)

Equity
Common stock, $5 par value 232,600.00 185,600.00 47,000.00
Retained earnings 36,300.00 6,600.00 29,700.00
Total liabilities & equity $325,900.00 $292,900.00 $33,000.00
- -
16-11

Cash Flow from Operating Activities - Indirect Method

Net income $30,800.00

Add: Depreciation expense $38,600.00
Add: Decrease in Accounts receivable 9,900.00
Add: Decrease in Inventory 9,700.00
Less: Increase in Prepaid expenses (1,100.00)
Less: Decrease in Accounts payable (6,100.00)
Add: Increase in Accounts payable 4,300.00
Less: Decrease in Income taxes payable (1,200.00)
Net Cash Flow from Operating Activities 84,900.00

16-12

Furniture cost 75,700.00

Furniture sold at book value in 2017 44,900.00
Furniture acquisition 62,000.00

Cost of furniture sold 75,700.00

Increase in Accum. Depreciation (7,800.00)
Depreciation expense $38,600.00
Accum. depreciation on furniture sold 30,800.00
Cash Inflow from Sale of Furniture 44,900.00
(Book value of furniture sold)

16-13

1)
Common stock issued for cash
Cash dividends paid during 2017

Add: Beginning retained earnings 6,600.00

Add: Net income 30,800.00
Less: Ending retained earnings 36,300.00
Cash dividends paid during 2017 1,100.00

Less: Increase in retained earnings (29,700.00)

Add: Net income 30,800.00
Cash dividends paid during 2017 1,100.00

2)
Cash paid to reduce Notes payable in 2017
Notes payable 2016 71,600.00
Notes payable 2017 30,900.00
Cash paid to reduce Notes payable in 2016 40,700.00
(Decrease in notes payable)

QS 16-14B

Accounts receivable
Op Bal 51,700.00
Sales $501,300.00 $511,200.00 Cash collected from customers

End bal 41,800.00

Ques 2

Cash is increased by $73000 (97400-24400)

Ques 3
Inventory
Op Bal 97,100.00
Purchases $312,900.00 $322,600.00 Cost of goods sold

End bal 87,400.00

Accounts payable
$21,500.00 Op Bal
Payments for purchases $319,000.00 $312,900.00 Purchases

$15,400.00 End bal

therefore payments for purchases-$338400

ques 3

Expesnes 91,600.00
Add:opening wages payable 4,900.00
Less:closing wages payable (9,200.00)
Add:closing prepaid exp 5,500.00
less:opening prepaid (4,400.00)
payments for expenses 88,400.00

ques 4
Cash flow from operating activites
receipt from sales to customers $ 511,200.00
Payments for merchandise inventory $ (319,000.00)
payments for other expense $ (88,400.00)
payments for taxes $ (18,900.00)
(2700+17700-1500) -
Net cash provided by operating activities $84,900.00