30) Matthauson Company has the following comparative balance sheet data available:
|
12/31/2015
|
12/31/2014
|
Cash
|
$30,000
|
$80,000
|
Accounts Receivable, net
|
160,000
|
100,000
|
Inventory
|
100,000
|
70,000
|
Prepaid Rent
|
20,000
|
10,000
|
Total Current Assets
|
$310,000
|
$260,000
|
Equipment
|
$400,000
|
$200,000
|
Accumulated Depreciation
|
(60,000)
|
(50,000)
|
Total Assets
|
$650,000
|
$410,000
|
|
|
|
Accounts Payable
|
$50,000
|
$40,000
|
Salaries Payable
|
40,000
|
40,000
|
Bonds Payable
|
0
|
50,000
|
Common Stock, $10 par
|
300,000
|
100,000
|
Additional Paid-in Capital
|
50,000
|
0
|
Retained Earnings
|
210,000
|
180,000
|
Total Liabilities & Stockholders' Equity
|
$650,000
|
$410,000
|
Additional information:
1. The company reports net income of $100,000 and Depreciation Expense of $20,000 for the year ending December 31, 2015.
2. Dividends declared and paid in 2015, $70,000.
3. Equipment with a cost of $20,000, with Accumulated Depreciation of $10,000 was sold for $3,000.
4. New equipment was purchased for cash.
The company also reports the following income statement for the year ending December 31, 2015:
Sales
|
|
$1,000,000
|
Expenses:
|
|
|
Cost of Goods Sold
|
600,000
|
|
Salaries Expense
|
200,000
|
|
Rent Expense
|
40,000
|
|
Depreciation Expense
|
20,000
|
|
Interest Expense
|
3,000
|
|
Loss on Sale of Equipment
|
7,000
|
|
Income Tax Expense
|
30,000
|
900,000
|
Net Income
|
|
$100,000
|
Using the direct method, prepare the statement of cash flows for the year ending December 31, 2015.
31) The income statement and other data for Davidson Carpet Town, Inc., follow:
Davidson Carpet Town, Inc.
|
Income Statement
|
Year Ended December 31, 2015
|
Sales
|
|
$460,000
|
Cost of Goods Sold
|
|
190,000
|
Gross Margin
|
|
270,000
|
Operating Expenses
|
$70,000
|
|
Depreciation Expense
|
20,000
|
90,000
|
Income Before Taxes
|
|
180,000
|
Income Tax Expense
|
|
10,000
|
Net Income
|
|
$170,000
|
The changes in the current assets and current liabilities for the year ending December 31, 2015 were:
Accounts Receivable
|
Decrease $10,000
|
Inventory
|
Increase $8,000
|
Prepaid Insurance
|
Increase $4,000
|
Accounts Payable
|
Increase $14,000
|
Accrued Expenses Payable
|
Increase $2,000
|
Income Tax Payable
|
Increase $1,000
|
Using the direct method, prepare the operating activities section of the statement of cash flows for the year ending December 31, 2015. Please show calculations.