Presented below is the balance sheet of Sargent Corporation for the current year, 2014.
probleme 1
SARGENT CORPORATION
BALANCE SHEET
DECEMBER 31, 2014
Current assets $ 488,140 Current liabilities $ 383,140
Investments 643,140 Long-term liabilities 1,003,140
Property, plant, and equipment 1,723,140 Stockholders' equity 1,773,140
Intangible assets 305,000 $3,159,420
$3,159,420
The following information is presented.
1. The current assets section includes cash $153,140, accounts receivable $173,140 less $13,140 for allowance for doubtful accounts, inventories $183,140, and unearned rent revenue $8,140. Inventory is stated on the lower-of-FIFO-cost-or-market.
2. The investments section includes the cash surrender value of a life insurance contract $43,140; investments in common stock, short-term (trading) $83,140 and long-term (available-for-sale) $273,140; and bond sinking fund $243,720. The cost and fair value of investments in common stock are the same.
3. Property, plant, and equipment includes buildings $1,043,140 less accumulated depreciation $363,140; equipment $453,140 less accumulated depreciation $183,140; land $503,140; and land held for future use $270,000.
4. Intangible assets include a franchise $168,140; goodwill $103,140; and discount on bonds payable $33,720.
5. Current liabilities include accounts payable $143,140; notes payable-short-term $83,140 and long-term $123,140; and income taxes payable $33,720.
6. Long-term liabilities are composed solely of 8% bonds payable due 2022.
7. Stockholders' equity has preferred stock, no par value, authorized 200,000 shares, issued 73,140 shares for $438,840; and common stock, $1.00 par value, authorized 400,000 shares, issued 103,140 shares at an average price of $10. In addition, the corporation has retained earnings of $302,900.
Prepare a balance sheet in good form, adjusting the amounts in each balance sheet classification as affected by the information given above. (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.)
problem2
Aero Inc. had the following balance sheet at December 31, 2013.
AERO INC.
BALANCE SHEET
DECEMBER 31, 2013
Cash $ 25,020 Accounts payable $ 35,020
Accounts receivable 26,220 Bonds payable 46,020
Investments 32,000 Common stock 105,020
Plant assets (net) 86,020 Retained earnings 28,220
Land 45,020 $214,280
$214,280
During 2014, the following occurred.
1. Aero liquidated its available-for-sale investment portfolio at a loss of $10,020.
2. A tract of land was purchased for $43,020.
3. An additional $30,000 in common stock was issued at par.
4. Dividends totaling $15,020 were declared and paid to stockholders.
5. Net income for 2014 was $40,020, including $17,020 in depreciation expense.
6. Land was purchased through the issuance of $35,020 in additional bonds.
7. At December 31, 2014, Cash was $75,220, Accounts Receivable was $47,020, and Accounts Payable was $45,020.
Prepare a statement of cash flows for the year 2014 for Aero. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)