Question : 150. The following information available for the Ehrens Corporation: EHRENS CORPORATION Balance Sheets At : 1256424

 

150. The following information is available for the Ehrens Corporation: 

EHRENS CORPORATION

Balance Sheets

At December 31

 

2013

2012

Assets:

 

 

Cash

$ 24,640

$ 23,040

Accounts receivable

32,180

29,400

Merchandise inventory

73,125

61,710

Long-term investments

55,900

56,400

Equipment

175,500

145,500

Accumulated depreciation

(33,550)

(31,200)

Total assets

$327,795

$284,850

 

 

 

Liabilities:

 

 

Accounts payable

$ 65,000

$ 40,380

Incomes taxes payable

10,725

10,200

Bonds payable

48,750

66,000

Total liabilities

$124,475

$116,580

Equity:

 

 

Common stock

117,000

96,000

Contributed capital in excess of pay

13,000

9,000

Retained earnings

73,320

63,270

Total equity

$203,320

$168,270

Total liabilities and equity

$327,795

$284,850

 

EHRENS CORPORATION

Income Statement

For Year Ended December 31, 2013

Sales

 

$240,000

Cost of goods sold

$80,900

 

Depreciation expense

29,400

 

Other operating expenses

48,000

 

Interest expense

2,000

(160,300)

Other gains (losses):

 

 

Loss on sale of equipment

 

(8,400)

Income before taxes

 

71,300

Income taxes expense

 

27,650

Net income

 

$ 43,650

Additional information: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.(3) New equipment was purchased for $67,550 cash.

(4) Cash dividends of $33,600 were paid.(5) Additional shares of stock were issued for cash.Prepare a statement of cash flows for the 2013 calendar year using the indirect method. 

 

151. Use the following company information to calculate its net cash provided or used by investing activities: (a) Equipment with a book value of $125,000 and an original cost of $220,000 was sold at a gain of $22,000.(b) Paid $49,000 cash for a new truck.(c) Sold land costing $30,000 for $26,000 cash, realizing a $4,000 loss.(d) Purchased treasury stock for $53,000 cash.(e) Long-term investments in stock are sold for $41,000 cash, realizing a gain of $3,500. 

 

152. Use the following company information to prepare a schedule of significant noncash investing and financing activities: (a) Sold a building with a book value of $125,000 for $195,000 cash and land with a book value of $32,000 for $65,000 cash.(b) Issued 10,000 shares of $10 par value common stock in exchange for equipment with a market value of $135,000.(c) Retired a $100,000, 10% bond by issuing another $100,000, 12% bond issue.(d) Acquired land by issuing a 10-year, 9%, $44,000 note payable.

 

 

 

 

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