Problem: Presented below is the Statement of Cash Flows for Marstore, Inc., for the year ended December 31, 2007. Also shown is a partially completed comparative balance sheet as of December 31, 2007 and 2006. Complete the balance sheet.
MARSTORE, INC.
Statement of Cash Flows
For the Year Ended December 31, 2007
Cash flows from operating activities:
Net Income......................................................$ 23, 000
Add (deduct) items not affecting cash:
Depreciation expense........................................6,000
Decrease in accounts receivable.......................8,000
Decrease in accounts payable..........................(6,000)
Net cash provided by operating activities............ $31,000
Cash flows from investing activities:
Purchase of store fixtures................................. $(4,000)
Cash flows from financing activities:
Repayment of long-term debt..............................$(2,000)
Payment of cash dividends on common stock.......(5,000)
Net cash used by financing activities..................... $(7,000)
Increase in cash for the year................................. $20,000
MARSTORE, INC.
Balance Sheets
December 31, 2007 and 2006
2007 2006 2007 2006
Current assets:
Cash................$37,000 $_______ Accounts payable..$_____ $18,000
Accts receivable ______ 39,000 Long-term debt....... 18,000 ______
Total current assets _____ ______ Total liabilities.......... ______ ______
Store fixtures..... ______ $24,000 Common stock....... _______ $20,000
Less: Accumulated Retained earnings.. ______ ______
depreciation.... (13,000) _____ Total owners' equity ______ ______
Net store fixtures.. _____ ______ Total liabilities and
Total assets......... ______ ______ owners' equity.... ______ ______