Solutions Chapter 1 – Set B Exercises – Libby 7e
E1-1B.
Sunoco Inc.
Balance Sheet
For the Period ending December 31, 2009
(in millions of dollars)
Assets
Cash and cash equivalents
$ 377
Trade accounts, notes, and other receivables
2,262
Inventories
635
Investments
179
Net property, plant and equipment
7,626
Other assets
816
Total assets
$11,895
E1-2B.
UNIVERSITY MARKET
Income Statement
For the Month of March 2011
Revenues:
Sales: Cash $150,000
On credit 5,000
Total sales revenue $155,000
Expenses:
Liabilities
Accounts payable and other current liabilities
Long-term debt
2,061
Other liabilities
Total liabilities
Contributed capital
1,984
Retained earnings
E1–3B.
Net Income (or Loss) = Revenues – Expenses
Assets = Liabilities + Stockholders’ Equity
A Net Income = $89,700 – $73,940 = $15,760;
Stockholders’ Equity = $134,200 – $59,000 = $75,200.
E1–4B.
Net Income (or Loss) = Revenues – Expenses
Assets = Liabilities + Stockholders’ Equity
A Net Income = $230,820 – $176,700 = $54,120;
Stockholders’ Equity = $295,300 – $95,000 = $200,300.
B Total Revenues = $165,780 + $32,920 = $198,700;
Total Liabilities = $580,000 – $358,400 = $221,600.
E1–5B. XTREME MANUFACTURING CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2011
Cash flow from operating activities
Cash collections from sales $260,000
Cash paid for operating expenses (195,000)
Net cash flow from operating activities $65,000
Cash flow from investing activities
Sale of land 35,000
E1–6B.
BARBARA’S DESIGN CORPORATION
Statement of Retained Earnings
For the Year Ended December 31, 2012
Beginning retained earnings* $23,800
Net income 40,000
E1-7B.
FABULOUS STYLES
Income Statement
For the Month of March 2011
Revenues:
Sales: Cash $180,000
On credit 4,000
Total sales revenue $184,000
Expenses:
E1–8B.
Net Income (or Loss) = Revenues – Expenses
Assets = Liabilities + Stockholders’ Equity
A Net Income = $91,700 – $75,940 = $15,760;
Stockholders’ Equity = $136,200 – $61,000 = $75,200.
E1–9B.
Net Income (or Loss) = Revenues – Expenses
Assets = Liabilities + Stockholders’ Equity
A Net Income = $240,820 – $176,700 = $64,120;
Stockholders’ Equity = $295,000 – $95,000 = $200,000.
B Total Revenues = $165,700 + $32,020 = $197,720;
Total Liabilities = $585,000 – $365,400 = $219,600.
E1–10B. XTREME MANUFACTURING CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2011
Cash flow from operating activities
Cash collections from sales $275,000
Cash paid for operating expenses (198,000)
Net cash flow from operating activities $77,000
Cash flow from investing activities
Sale of land 23,000