The Comparative Balance Sheet of ConnieJo Company,for December 31,Years 1

question 61

Essay

The comparative balance sheet of ConnieJo Company,for December 31,Years 1 and 2 ended December 31 appears below in condensed form:
$\begin{array}{lrr}&\underline {\text { Year 2 }}&\underline {\text { Year 1 }}\\\\\text { Cash } & \$ 45,000 & \$ 53,500 \\\text { Accounts receivable net } & 51,300 & 58,000 \\\text { Inventories } & 147,200 & 135,000 \\\text { Investments } & 0 & 60,000 \\\text { Equipment } & 493,000 & 375,000 \\\text { Accumulated depreciation -equipment } & \underline {113,700} & \underline {128,000}\\& \underline {\$ 622.800 } & \underline {\$ 553.500 }\\\\ \text { Accounts payable }& \$ 61,500 & \$ 42,600 \\ \text { Bonds payable, due Year 4 }& 0 & 100,000\end{array}$ $\begin{array}{lrrr}\text { Common stack, \$10 par } & 250,000 & 200,000 \\\text { Paid-in capital in excess of par-common stock } & 75,000 & 50,000 \\\text { Retained earnings } & 236,300 & 160,900 \\& \underline {\$ 622,800}&\underline {\$ 553,500} \\\\\text { The income statement for the current year is as follows: }\\\\\text { Sales }&&\$ 623,000 \\\text { Cost of merchandise sold }&&348,500\\\text { Gross profit }&&\underline { \$ 274,500}\\\text { Operating expenses: }\\\text { Depreciation expense }&\$ 24,700\\ \text { Other operating expenses }&\underline{75,300} & \underline{100,000}\\\text { Income from operations}&&{\$ 174,500}\\\text { Other income }\\\text { Gain on sale of investment }& \$5000\\\text { Other expense: }\\\text { Interest expense } & \underline{12,000} & \underline{7,000}\\ \text { Income before income tax } & & {\$ 167,500} \\\text { Income tax } & & \underline{64,100} \\\text {Net Income } & &\$ 103,400\end{array}$ Additional data for the current year are as follows:
a. Fully depreciated equipment costing $39,000 was scrapped,no salvage,and equipment was purchased for $157,000.
b. Bonds payable for $100,000 were retired by payment at their face amount.
c. 5,000 shares of common stock were issued at $15 for cash.
d. Cash dividends declared were paid $28,000.
e. All sales are on account.
Prepare a statement of cash flows,using the direct method of reporting cash flows from operating activities.

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Definitions:

Aircraft Scheduling

The process of planning and assigning available aircraft to flights, considering factors such as maintenance, crew availability, and operational efficiency.

Shipments Pattern

The distribution or arrangement of how goods are transported from one location to another over a specific period.

Operations Strategy

A plan that outlines how a business will allocate resources to support infrastructure, production, and logistics to meet customer demand and maintain a competitive advantage.

Location Strategy

The decision-making process for determining the geographical placement of the operations of a business.