167. Below is balance sheet information for five independent situations. Calculate the answer
to each.
1. A company reports total assets of $2,000 and total liabilities of $900. What is the amount of
stockholders’ equity?
2. A company reports total liabilities of $2,400 and stockholders’ equity of $1,100. What is
the amount of total assets?
3. A company reports total assets of $2,700 and total stockholders’ equity of $700. What is the
amount of total liabilities?
4. A company reports an increase in assets of $1,700 and an increase in liabilities of $400.
What is the amount of the change in stockholders’ equity?
5. A company reports an increase in liabilities of $300 and a decrease in stockholders’ equity
of $800. What is the amount of the change in total assets?
Answer:
168. Below is cash flow information for five independent situations. Calculate the answer to
each.
1. A company reports operating cash flows of $3,200, investing cash flows of $700, and
financing cash flows of -$400. What is the amount of the change in total cash?
2. A company reports operating cash flows of $1,800, investing cash flows of -$400, and
financing cash flows of -$1,100. If the beginning cash amount is $500, what is the ending
cash amount?
3. A company reports operating cash flows of $700, investing cash flows of $300, and a
change in total cash of $100. What is the amount of cash flows from financing activities?
4. A company reports operating cash flows of $600, financing cash flows of $400, and a
change in total cash of $100. What is the amount of cash flows from investing activities?
5. A company reports investing cash flows of -$1,400, financing cash flows of $900, and a
change in total cash of $200. What is the amount of cash flows from operating activities?
Answer:
169. Riley Incorporated reports the following amounts at the end of the year:
In addition, the company had common stock of $65,000 at the beginning of the year and
issued an additional $5,000 during the year. The company also had retained earnings of
$20,700 at the beginning of the year and paid dividends of $2,000 during the year. Prepare the
income statement, statement of stockholders’ equity, and balance sheet.
Answer:
170. Below are incomplete financial statements for Beasley, Incorporated. Calculate the
missing amounts.
171. Use the following information available at the end of 2012 to prepare an income
statement and balance sheet on December 31, 2012, for Goldie Company.
Fees for services performed during the year, $120,000
Accounts payable, $18,500
Accounts receivable, $17,300
Miscellaneous costs for the year, $8,700
Supplies on hand, $2,700
Notes payable outstanding, $30,000
Interest cost on the note for the year, $3,000
Equipment, $84,400
Cash on hand, $11,200
Salaries cost for the year, $71,500
Supplies cost for the year, $9,400
Rent cost for the year, $12,000
Common stock that has been issued, $60,000
Retained earnings at the end of the year, $7,100
172. List and describe the four financial statements most frequently provided to external
users.
173. How does the value of an audit affect financial statements?
174. Define the four basic assumptions underlying Generally Accepted Accounting
Principles:
(a) economic entity, (b) going concern, (c) periodicity, (d) monetary unit.
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