Problem:
Natkey Inn
Condensed Balance Sheets
December 31,2001 and 2002
| Assets |
|
|
|
2001 |
2002 |
| Cash |
|
|
|
$30 |
$40 |
| Marketable securities |
|
50 |
50 |
| Accounts receivable |
|
100 |
95 |
| Inventories |
|
|
20 |
25 |
| Investments |
|
|
100 |
60 |
|
|
|
|
|
|
| Property and Equipment |
|
|
|
| Land |
|
|
|
500 |
500 |
| Building |
|
|
|
5000 |
6000 |
| Equipment |
|
|
1000 |
1100 |
| Accumulated depreciation |
|
-1600 |
-2000 |
| Net Property and Equipment |
|
4900 |
5600 |
| Total Assets |
|
|
$5,200 |
$5,870 |
|
|
|
|
|
|
| Liabilties and Owner's Equity |
|
|
|
| Current Liabilities |
|
|
|
|
| Accounts payable |
|
|
60 |
70 |
| Dividends payable |
|
|
30 |
50 |
| Current portion of LTC |
|
100 |
130 |
| Total |
|
|
|
190 |
250 |
| Long-term debt |
|
|
4000 |
4370 |
| Capital stock |
|
|
700 |
700 |
| Retained earnings |
|
|
310 |
550 |
| Total liabilities and Owner's Equity |
$5,200 |
$5,870 |
Additional Information
1. Dividends declared during 2002 totaled $100000.
2. Investments costing $50000 were sold for $350000 during 2002.
3. Only one depreciable asset was sold during the 2002. A range cost $10000, depreciated to $2000, was sold for $5000.
4. Long-term debt was borrowed to partially finance the building purchase.
Questions.
1. What was the amount of cash on January 1, 2002?
2. How much did the change in accounts receivable during 2002 contribution to the change in cash?
3. What were the total current assets at the end of 2001?
4. What was the amount of the gain on the sale of the range?
5. What were the total purchase of equipment during 2002?
6. What was the depreciation expense for 2002?
7. How much LTD was paid during 2002?
8. What was the amount of dividends paid during 2002?
9. Based on the above, what amount of dividends will be paid during 2003?
10. What was the net income for 2002?