Maurice Tutor
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The following comparative balance sheets and other data are for
Dayton Tent & Awning Sales, Inc.:
Dayton Tent & Awning Sales, Inc.
Comparative Balance Sheets 2011 June 30 and 2010
|
Assets |
2011 |
2010 |
|
Cash |
 |  |
|
Accounts receivable, net |
$ 441,800 |
$ 332,600 |
|
Merchandise inventory |
7,50,750 |
4,32,900 |
|
Prepaid insurance |
8,19,000 |
8,50,200 |
|
Land |
3,900 |
5,850 |
|
Buildings |
3,12,000 |
3,51,000 |
|
Machinery and tools |
21,84,000 |
12,09,000 |
|
Accumulated depreciation – machinery and |
8,58,000 |
4,68,000 |
|
tools |
-8,09,250 |
510,900) |
|
Total assets |
$ |
$ |
|
Liabilities and stockholders" equity |
45,60,200 |
31,38,650 |
|
Accounts payable |
$ 226,750 |
$ 275,500 |
|
Accrued liabilities payable |
1,85,800 |
1,11,700 |
|
Bank loans (due in 2009) |
56,550 |
66,300 |
|
Mortgage bonds payable |
3,82,200 |
1,85,250 |
|
Common stock - $100 par |
17,55,000 |
5,85,000 |
|
Paid-in capital in excess of par |
58,500 |
0- |
|
Retained earnings |
18,95,400 |
19,14,900 |
|
Total liabilities and stockholders" equity |
$ |
$ |
| Â |
45,60,200 |
31,38,650 |
Net income for the year was USD 128,000.
Depreciation for the year was USD 356,850.
There was a gain of USD 7,800 on the sale of land. The land was sold for USD 46,800. The additional mortgage bonds were issued at face value as partial payment for a
building valued at USD 975,000. The amount of cash paid was USD 778,050.
Machinery and tools were purchased for USD 448,500 cash. Fully depreciated machinery with a cost of USD 58,500 was scrapped and written off.
Additional common stock was issued at USD 105 per share. The total proceeds were USD 1,228,500.
Dividends declared and paid were USD 147,500.
A payment was made on the bank loan, USD 9,750.
The company paid interest of USD 9,000 and income taxes of USD 75,000.
a. Prepare a working paper for a statement of cash flows.