The following accounts appear in the ledger of Sayre Corporation on December 31 Preferred Stock Common Stock Additional Paid-in Capital, Preferred7,000 Additional Paid-in Capital, Common 18,000 Retained Earnings $30,000 46,000 40,000 A balance sheet prepared on December 31 would report total stockholders\' equity of Select one: a. $76,000 b. $83,000 c. $101,000 d, $141,000 e. $134,000
Answer =1) Stockholder\'s Equity = $ 30,000 + $ 46,000 + $ 7000 + $ 18,000 + $ 40,000 = $ 1,41,000 Answer = Option D = $ 141,000 Answer =2) Cash Dividend Declared = $ 8,00,000 Less : Dividend of Cumulative arrears for last 2 year + Dividend for the year = total 3 years Dividend is payable for preferred shareholders 10,000 Shares X $ 100 = $ 1,000,000 X 8% X 3 years = $ 2,40,000 Dividend paid to Common Shareholders = $ 5,60,000 Answer = Option E = $ 240,000 and $ 560,000 Answer =3) Statement of Cash Flows - Indirect Method (Opearing Activities) Amount in $ Amount in $ Net income $ 3,65,000 Cash flows from operating activities Adjustments for: Depreciation $ 96,000 Amortization of intangible assets $ 11,000 (Increase) / Decrease in Account receivables $ -19,000 Inventory Decrease / (Increase) $ -44,000 Accounts payable Increase / ( Decrese) $ 27,000 Prepaid Expenses $ 6,000 $ 77,000 Net cash from operating activities $ 4,42,000 From the Above line - $ 44,000 line is there So, answer = Option A = - $ 44,000
Homework Sourse
