Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Satellite 2010 was founded in 2010 to apply a new technology for efficiently transmitting closed-circuit (cable) television signals without the need for an in-ground cable. The company earned a profit of $115,000 in 2010, its first year of operations, even though it was serving only a small test market. In 2011, the company began dramatically expanding its customer base. Management expects both sales and net income to more than triple in each of the next five years.
Comparative balance sheets at the end of 2010 and 2011, the company's first two years of operations, follow. (Notice that the balances at the end of the current year appear in the right-hand column.)
Additional Information
The following information regarding the company's operations in 2011 is available in either the company's income statement or its accounting records:
1.
Net income for the year was $440,000. The company has never paid a dividend.
2.
Depreciation for the year amounted to $147,000.
3.
During the year the company purchased plant assets costing $2,200,000, for which it paid $1,850,000 in cash and financed $350,000 by issuing a long-term note payable. (Much of the cash used in these purchases was provided by short-term borrowing, as described below.)
4.
In 2011, Satellite 2010 borrowed $1,450,000 against a $6 million line of credit with a local bank. In its balance sheet, the resulting obligations are reported as notes payable (short-term).
5.
Additional shares of capital stock (no par value) were issued to investors for $500,000 cash.
SATELLITE 2010 COMPARATIVE BALANCE SHEETS
December 31,
2010
2011
Assets
Cash and cash equivalents
$
80,000
37,000
Accounts receivable
100,000
850,000
Plant and equipment (net of accumulated depreciation)
600,000
2,653,000
Totals
780,000
3,540,000
Liabilities & Stockholders' Equity
Notes payable (short-term)
- 0 -
1,450,000
Accounts payable
30,000
63,000
Accrued expenses payable
45,000
32,000
Notes payable (long-term)
390,000
740,000
Capital stock (no par value)
200,000
700,000
Retained earnings
115,000
555,000
Instructions
a.
Prepare a worksheet for a statement of cash flows. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
SATELLITE 2010 Worksheet for a Statement of Cash Flows For the Year Ended December 31, 2011
Balance sheet effects:
Effects of Transactions
Beginning Balance
Debit Changes
Credit Changes
Ending Balance
Liabilities & Owners' Equity
Capital stock (no par)
b.
Prepare a statement of cash flows for 2011 by the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)
SATELLITE 2010 Statement of Cash Flows For the Year Ended December 31, 2011
Cash flows from operating activities:
Subtotal
Net cash operating activities
Cash flows from investing activities:
Net cash investing activities
Cash flows from financing activities:
Net cash financing activities
Cash and cash equivalents, January 1, 2011
Cash and cash equivalents, Dec. 31, 2011
vidovich corp. produces and sells renewable energy equipment. to finance its operations vidovich corp. issued 1412000
x company prepares annual financial statements. on september 1 2014 x company paid 63000 in advance for a two-year
great southern furniture ed koehler started great southern furniture five years ago to assemble prefabricated bedroom
How does the AICPA Code of Professional Conduct relate to ethics? Provide examples to support your response.
the paradise shoes company has estimated its weekly tvc function from data collected over the past several months as
analyze the diversity practices of your organization to determine if it is engaged in surface-level or deep-level
listed below are the unadjusted general ledger account balances of franklin co. at december 31 2010 amounts are
Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2011. The note, along with interest at 6%, is due on June 30, 2012. On September 30, 2011, Ireland discounted the note at Cloverdale bank. The bank's discount rate ..
during april leary company sold 1000 units of product q. its beginning inventory and purchases during the month are
What additional guidelines requirements are related to ethics are required to ensure consistency of CPAs across the nation? What are some examples of ethics violations?
Identify at least 3 areas in accounting and/or audit where complexity increases as a result of globalization. How should audit firms deal with them?
Calculate Golden Gate Construction Associates' weighted-average cost of capital.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd