Prepared addison controls balance sheet and income statement

Assignment Help Financial Accounting

Reference no: EM131260418

(Part Level Submission) Kate Petusky prepared Addison Controls’ balance sheet and income statement for 2013. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Addison’s president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheet and income statement that Petusky prepared, as well as some notes she made:

Addison Controls Income Statement For the Year Ended December 31, 2013

Sales revenue $127,900 Cost of goods sold 69,830 Gross margin 58,070 Selling expense 13,060 Administrative expense 8,140 Salaries expense 20,040 Depreciation expense 1,940 Interest expense 4,110 47,290 Income before gain and taxes 10,780 Gain on sale of land 940 Income tax expense 810 Net income $10,910

Addison Controls Comparative Balance Sheets As of December 31 2013 2012

Cash $5,190 $4,330 Accounts receivable, net 6,360 5,540 Inventory 31,740 34,300 Total current assets 43,290 44,170 Property, plant, & equipment, net 211,530 215,320 Total assets $254,820 $259,490 Accounts payable $3,400 $5,960 Accrued expenses 700 730 Salaries payable 1,840 1,600 Taxes payable 2,160 2,620 Bonds payable 60,050 50,080 Total liabilities 68,150 60,990 Common stock 125,060 125,060 Retained earnings 61,610 73,440 Total stockholders’ equity 186,670 198,500 Total liabilities & stockholders' equity $254,820 $259,490

• Equipment with an original cost of $35,020 was sold for $20,360. The book value of the equipment was $19,420.

• On June 1, 2013, the company purchased new equipment for cash at a cost of $17,570.

• At the end of the year, the company issued bonds payable for $9,970 cash. The bonds will mature on December 31, 2017.

• The company paid $22,740 in cash dividends for the year.

Collapse question part (a) Calculate the following amounts:

a. Collections from customers

b. Payments to suppliers

c. Payments to employees

d. Payments for operating expenses

e. Payments for income taxes

Reference no: EM131260418

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