Reference no: EM13822213

Presented below is the trial balance of Scott Butler Corporation at December 31, 2014.

Instructions

Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore incometaxes.)

		Debit		Credit
Cash		mce_markernbsp;  197,000
Sales				$ 8,100,000
Debt Investments (trading) (cost, $145,000)		153,000
Cost of Goods Sold		4,800,000
Debt Investments (long-term)		299,000
Equity Investments (long-term)		277,000
Notes Payable (short-term)				90,000
Accounts Payable				455,000
Selling Expenses		2,000,000
Investment Revenue				63,000
Land		260,000
Buildings		1,040,000
Dividends Payable				136,000
Accrued Liabilities				96,000
Accounts Receivable		435,000
Accumulated Depreciation-Buildings				152,000
Allowance for Doubtful Accounts				25,000
Administrative Expenses		900,000
Interest Expense		211,000
Inventory		597,000
Gain (extraordinary)				80,000
Notes Payable (long-term)				900,000
Equipment		600,000
Bonds Payable				1,000,000
Accumulated Depreciation-Equipment				60,000
Franchises		160,000
Common Stock ($5 par)				1,000,000
Treasury Stock		191,000
Patents		195,000
Retained Earnings				78,000
Paid-in Capital in Excess of Par				80,000
Totals		$12,315,000		$12,315,000

Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

(Multiple Step and single-step) Webster Company ($000omited)

Administrate expense      

Officers' salaries      4900 

Depreciated of office furniture and equipment 3960 

Cost of sales good      60570 

Rental revenue            17230 

Selling expense 

Transportation-out      2690 

Sales Commissions      7980      

Depreciation of sales equipment      6480 

Sales      96500 

Income Tax      9070 

Interest Expense      1860


(Instructions) 

a. Prepare an income statement for the year 2014 using the multiple-step form. Common shares out-standing for 2014 total 40,550($000 omitted). 

b. Prepare an income statement for the year 2014 using the single step form 

c. Which one do you prefer? Disuses.

(Preparation of a Statement of Cash Flows) Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31.

    2007      2006

Cash $177,000   $78,000

Accounts receivable 180,000   185,000

Investments 52,000     74,000

Equipment 298,000   240,000

Less: Accumulated depreciation (106,000)   (89,000)

Current liabilities 134,000      151,000

Capital stock 160,000    160,000

Retained earnings 307,000     177,000

Additional information:

Investments were sold at a loss (not extraordinary) of $10,000; no equipment was sold; cash dividends paid were $30,000; and net income was $160,000.

Instructions

1. Prepare a statement of cash flows for 2007 for Zubin Mehta Corporation.

2. Determine Zubin Mehta Corporation's free cash flow.