[Question 1] Saturn Company Comparative Balance Sheet 2018 2017 Assets Cash Accounts Recelvable Prepaid Insurance Inventory Land Plant Assets $ 47,500 21,500 2,500 48,000 20.000 230,000 (85,500) $284.000 S 24,300 26,000 1,800 45,500 10,000 190,000 (71,100) $226,500 Accumulated Depreciation Total Assets Llabilities and Equity Liabilities: Accounts Payable Salaries Payable Notes Payable $ 17,200 1,900 85.000 S 19,000 1,500 75,000 95,500 Total Liabiltes. 104.100 Equity Common Stock Retained Earnings Total Equity Total Liabilities and Equity 115.000 64.900 70,000 61,000 131,000 $226,500 179.900 $4284.000

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Chapter1: Financial Statements And Business Decisions
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[Question 1]
Saturn Company
Comparative Balance Sheet
2018
2017
Assets
Cash
Accounts Recelvable
Prepaid Insurance
Inventory
Land
Plant Assets
$ 47,500
21,500
2,500
48,000
20,000
230,000
(85,500)
$284,000
$ 24,300
26,000
1,800
45,500
10,000
190,000
(71,100)
Accumulated Depreciation
Total AssetsS
$226,500
Llabilities and Equity
Labilities
Accounts Payable
Salaries Payable
Notes Payable
Total Llabilities
S 19,000
1,500
75.000
$ 17,200
85.000
104.100
95.500
315.000
64.900
Common Stock
Retained Earnings
Tota Equity
Total Liabilities and Equity
61,000
379.900
131.000
$284.000
$226,500
Transcribed Image Text:[Question 1] Saturn Company Comparative Balance Sheet 2018 2017 Assets Cash Accounts Recelvable Prepaid Insurance Inventory Land Plant Assets $ 47,500 21,500 2,500 48,000 20,000 230,000 (85,500) $284,000 $ 24,300 26,000 1,800 45,500 10,000 190,000 (71,100) Accumulated Depreciation Total AssetsS $226,500 Llabilities and Equity Labilities Accounts Payable Salaries Payable Notes Payable Total Llabilities S 19,000 1,500 75.000 $ 17,200 85.000 104.100 95.500 315.000 64.900 Common Stock Retained Earnings Tota Equity Total Liabilities and Equity 61,000 379.900 131.000 $284.000 $226,500
Satum Company Income Statement for year ended Dec. 31, 2018
Sales Revenue
Cost of Goods Sold
$238,000
153,000
85,000
Gross Profit
Operating Expenses:
Depreciation Expense
Insurance Expense
Salaries Expense
Other Operating Expenses
Total Operating Expenses
Operating Income
Other Revenue and (Expenses):
Gain on Sale of Land
Interest Expense
Total Other Revenue and Expenses
Income Before Income Tax
Income Tax Expense
Net Income
$14,400
12,000
42,600
11,100
80,100
4,900
4,800
(3,500)
1,300
6,200
1,860
5 4,340
Additional Information:
1. Saturn Company sold land with an original cost of S10,000, for S14.800 cash.
2. A new parcel of land was purchased for $20,000, in exchange for a note payable.
3. Plant assets were purchased for $40,000 cash,
4. Satum declared.and paid a $440 cash dividend to shareholders.
5.
Saturn issued common stock in exchange for $45.000 cash.
Prepare a cash flow statement for Saturn Company usinig the indireet method for the year ended
31 December 2018
Transcribed Image Text:Satum Company Income Statement for year ended Dec. 31, 2018 Sales Revenue Cost of Goods Sold $238,000 153,000 85,000 Gross Profit Operating Expenses: Depreciation Expense Insurance Expense Salaries Expense Other Operating Expenses Total Operating Expenses Operating Income Other Revenue and (Expenses): Gain on Sale of Land Interest Expense Total Other Revenue and Expenses Income Before Income Tax Income Tax Expense Net Income $14,400 12,000 42,600 11,100 80,100 4,900 4,800 (3,500) 1,300 6,200 1,860 5 4,340 Additional Information: 1. Saturn Company sold land with an original cost of S10,000, for S14.800 cash. 2. A new parcel of land was purchased for $20,000, in exchange for a note payable. 3. Plant assets were purchased for $40,000 cash, 4. Satum declared.and paid a $440 cash dividend to shareholders. 5. Saturn issued common stock in exchange for $45.000 cash. Prepare a cash flow statement for Saturn Company usinig the indireet method for the year ended 31 December 2018
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