The Comparative Balance Sheet Of Canace Products

Question

The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: 1 Dec. 31, 20Y6 Dec. 31, 20Y5 2 Assets 3 Cash $643,740.00 $678,670.00 4 Accounts receivable (net) 5…

The comparative balance sheet of Canace Products Inc. for
December 31, 20Y6 and 20Y5, is as follows: 1 Dec. 31, 20Y6 Dec. 31,
20Y5 2 Assets 3 Cash $643,740.00 $678,670.00 4 Accounts receivable
(net) 567,590.00 546,500.00 5 Inventories 1,010,270.00 983,300.00 6
Investments 0.00 239,830.00 7 Land 520,160.00 0.00 8 Equipment
879,990.00 680,730.00 9 Accumulated depreciation (244,840.00)
(200,100.00) 10 Total assets $3,376,910.00 $2,928,930.00 11
Liabilities and Stockholders’ Equity 12 Accounts payable
(merchandise creditors) $771,010.00 $748,100.00 13 Accrued expenses
payable (operating expenses) 63,500.00 71,400.00 14 Dividends
payable 7,850.00 5,880.00 15 Common stock, $2 par 56,000.00
32,000.00 16 Paid-in capital: Excess of issue price over par—common
stock 408,000.00 192,000.00 17 Retained earnings 2,070,550.00
1,879,550.00 18 Total liabilities and stockholders’ equity
$3,376,910.00 $2,928,930.00 The income statement for the year ended
December 31, 20Y6, is as follows: 1 Sales $5,983,200.00 2 Cost of
goods sold 2,452,370.00 3 Gross profit $3,530,830.00 4 Operating
expenses: 5 Depreciation expense $44,740.00 6 Other operating
expenses 3,099,470.00 7 Total operating expenses 3,144,210.00 8
Operating income $386,620.00 9 Other expense: 10 Loss on sale of
investments (64,530.00) 11 Income before income tax $322,090.00 12
Income tax expense 102,390.00 13 Net income $219,700.00 Additional
data obtained from an examination of the accounts in the ledger for
20Y6 are as follows: a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year. c. The
investments were sold for $175,300 cash d. The common stock was
issued for cash. e. There was a $28,700 debit to Retained Earnings
for cash dividends declared.

Solutions

Expert Solution

Assumed that Cash flow statement is required using Direct
Method

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