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Comparative balance sheets for Bayshore Industries, Inc. as of December 31

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Comparative balance sheets for Bayshore Industries, Inc. as of December 31 year 2 and year 1 are presented below. Prepare the cash from operations section of the statement of cash flows using the DIRECT method.;Bayshore Industries, Inc.;Balance Sheets;December 31, Year 2 and Year 1;Year 2 Year 1 Change;Assets;Current assets;Cash and cash equivalents $ 216,000 $ 144,000 $ 72,000;Trade receivables ? net 3,434,000 1,971,000 1,463,000;Inventory 810,000 216,000 594,000;Prepaid expenses 18,000 -- 18,000;Total current assets 4,478,000 2,331,000 2,147,000;Property and equipment 7,780,000 7,740,000 40,000;Less: accumulated depreciation 576,000 455,000 121,000;Property and equipment ? net 7,204,000 7,285,000 (81,000);Intangibles, less accumulated amortization of $14,400 ?;year 2 and $7,200 ? year 1;21,600;28,800;(7,200);Total assets $ 11,703,600 $ 9,644,800 $ 2,058,800;Liabilities and Stockholders? Equity;Current liabilities;Accounts payable and accrued expenses $ 872,600 $ 396,800 $ 475,800;Line of credit 108,000 90,000 18,000;Current portion of long-term debt 29,000 27,000 2,000;Total current liabilities 1,009,600 513,800 495,800;Long-term debt 3,069,000 3,098,000 (29,000);Total liabilities 4,078,600 3,611,800 466,800;Stockholders? equity;Common stock 9,000 9,000 0;Additional paid-in capital 5,400,000 5,400,000 0;Retained earnings 2,216,000 624,000 1,592,000;Total stockholders? equity 7,625,000 6,033,000 1,592,000;Total liabilities and stockholders? equity $ 11,703,600 $ 9,644,800 $ 2,058,800;Bayshore Industries, Inc.;Statement of Income and Retained Earnings;For the year ended December 31, Year 2;Net sales $ 19,800,000;Cost of sales 9,000,000;Gross profit on sales 10,800,000;Operating expenses;Selling expenses 3,600,000;General and administrative expenses 4,050,000;Other operating expenses 393,300;Total operating expenses 8,043,300;Operating income 2,756,700;Other income and expenses;Gain/loss on property and equipment disposals 18,000;Interest income 9,000;Interest expense (252,000);Other income and expenses ? net (225,000);Income before income taxes 2,531,700;Provision for income taxes 759,700;Net income 1,772,000;Retained earnings ? beginning 624,000;Dividends paid 180,000;Retained earnings ? ending $ 2,216,000

 

Paper#26209 | Written in 18-Jul-2015

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