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ACC - Ferguson Company

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Question;The following information related to Ferguson Company for 20x6 and 20x5Assets 20x6 20x5 ChangeCash $21,000 $54,000 ($33,000)Accounts receivable (net) 421,000 480,000 (59,000)Inventory 310,000 340,000 (30,000)Prepaid expenses 17,000 15,000 2,000Investments 80,000 80,000 0Land 350,000 300,000 50,000Building (net) 680,000 700,000 (20,000)Equipment (net) $520,000 $340,000 $180,000Total AssetsLiabilitiesAccounts payable $328,000 $335,000 ($7,000)accrued liabilities 171,000 170,000 1,000income taxes payable 22,000 34,000 (12,000)bonds payable 410,000 700,000 (290,000)long-term note payable 130,000 0 130,000total liabilities $1,061,000 $1,239,000 ($178,000)stockholders equitycommon stock $ 800,000 $ 600,000 $ 200,000additional paid in capital 152,000 152,000 0retained earnings 386,000 318,000 68,000total stockholders equity $1,338,000 $1,070,000 $268,000total liabilities and stockholders equity $2,399,000 $2,309,000 $90,000Additional Information:Net income for 20x6 was 143,000Issued a long-term note payable in exchange for computer equipment for $130,000Purchased computer terminals for $90,000Depreciation on equipment for 20x6 was $40,000Depreciation on building for 20x6 was $20,000Reacquired bonds payable at par for $290,000Declared and paid dividends for $75,000Issues 20,000 shares of common stock at par value of $10 per sharesPaid 50,000 for land intended for a new plant sitePrepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable.

 

Paper#41805 | Written in 18-Jul-2015

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