Homework SourseProblem 1327 Part Level Submission Blake Weaver Cook Enterpr
Problem 13-27 (Part Level Submission) Blake Weaver, Cook Enterprises\' controller, is preparing the financial statements for 2016. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information: On December 31, 2016, Cook sold a piece of equipment with an original cost of $25,000 for $30,000 cash. The equipment had a book value of $13,000 .On February 1, 2016, Cook issued $100,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year * On February 2, 2016, Cook took out a ten-year $75,000 long-term loan to provide the remaining funds needed to purchase the building On May 15, 2016, Cook paid $150,000 for the new building. .The company repaid $4,600 of the long-term debt before the end of the year. Cook Enterprises Income Statement For the Year Ended December 31, 2016 $1,070,000 17,000 1,087,000 700,000 Sales revenue Gain on equipment sale Total revenue Cost of goods sold Operating expenses Depreciation expense Interest expense Wages expenses Other expenses 30,000 7,400 175,000 16,000 228,400 158,600 63,400 95,200 Incorme before taxes Tax expense Net income Cook Enterprises Comparative Balance Sheets As of December 31 2016 2016 2015 Cash Accounts receivable, net Inventory $124,200 40,400 287,200 269,800 125,000 95,000 536,400 405,200 297,000 160,000 0,000 60,000 207,000 100,000 $743,400 505,200 $103,000 120,000 27,000 30,000 20,000 25,000 17,600 20,000 Total current assets Property, plant, & equipment Net propey, plant, & equipment Total assets Accounts payable Wages payable Accrued liabilities Taxes payable Mortgage payable 70,400 238,000 350,000 155,400 505,400 $743,400 195,000 250,000 60,200 310,200 $505,200 Total liabilities Common stock Retained earnings Total stockholders\' equity Total liabilities & stockholders\' equity 
Solution
Cook Enterprises Statement of Cash Flows (Direct Method) For the Year ended Dec 31, 2016 Cash Flow From opearting Activities Cash recd from Cutomers 1,052,600.00 Cash Paid to Suppliers (747,000.00) Cash Paid For Operating Exp. (206,400.00) Cash Paid for I Tax (65,800.00) Cash Flow from Operating Activities 33,400.00 Cash flow from Investing Activities Purchase of Equipments (150,000.00) Sale of Equipment 30,000.00 Cash Flow / (used) from Investing activities (120,000.00) Cash Flow from Financing Activities Proceeds from Long term debt 75,000.00 Payment of Long Term Debt (4,600.00) Issue of Common Stock 100,000.00 Cash Flow from Financing Activities 170,400.00 Net Increase / (Decrease) in Cash 83,800.00 Cash Beginning Balance - Dec 31, 2015 40,400.00 Cash Ending Balance - Dec 31, 2016 124,200.00 Calculation of Cash Recd. From Customers Sales Revenue 1,070,000.00 Add: Op. Accounts Receivables - Dec 31, 2015 269,800.00 Total Due to Customers 1,339,800.00 Less: Cls. Accounts Receivable - Dec 31, 2016 (287,200.00) Cash recd from Customers 1,052,600.00 Calculation of cash Paid to Suppliers Cost of Goods Sold 700,000.00 Add: Closing Inventory as on Dec 31,2016 125,000 Balance 825,000 Less: opening Inventory - Dec 31, 2015 (95,000) Purchases made during the year 730,000 Add: Opening Accounts Payable - Dec 31, 2015 120,000 Total amount Due 850,000 Less: Closing Accounts Payable - Dec 31, 2016 (103,000) Cash Paid to Suppliers 747,000 Calculation of Cash paid for Opearting Exp Operating Exp. 228,400.00 Less: Dep. On Plant & Equipment (30,000.00) Balance 198,400.00 Add: Accrued Liabilities - Dec 31, 2015 25,000 Add: Wages Payable - Dec 31, 2015 30,000 Total Expenses Due 253,400 Less: Accrued Liabilities - Dec 31, 2016 (20,000) Less: Wages Payable - Dec 31, 2016 (27,000) Cash Paid for Operating Expenses 206,400 Calculation of Cash paid for Income Tax Income Tax Expenses 63,400.00 Add: Tax Payable - Dec 31, 2015 20,000.00 Balance 83,400.00 Less: Tax Payable - Dec 31, 2016 (17,600.00) Cash paid for Income Tax 65,800.00