Friday 9 November 2012

Following is selected financial information of Trimark for the year ended December 31, 2011. Financial Statements

Following is selected financial information of Trimark for the year ended December 31, 2011.
Financial Statements

    
  Cash used by investing activities $ (1,750 )
  Net increase in cash   550  
  Cash used by financing activities   (2,550 )
  Cash from operating activities   4,850  
  Cash, December 31, 2010   3,900  


Required:
Prepare the 2011 statement of cash flows for Trimark Company. (Amounts to be deducted should be indicated by a minus sign. Omit the "$" sign in your response.)

Trimark
Statement of Cash Flows
For Year Ended December 31, 2011
  Cash from operating activities correct $ 4,850 correct  
  Cash used by investing activities correct -1,750 correct  
  Cash used by financing activities correct -2,550 correct  
  
  Net increase in cash correct $ 550 correct  
  Cash, December 31, 2010 correct 3,900 correct  
  
  Cash, December 31, 2011 correct $ 4,450 correct  
  

Following is selected financial information for Boardwalk for the year ended December 31, 2011. Retained earnings, Dec. 31, 2011 $ 18,750 Cash dividends $ 2,000 Net income 11,750 Retained earnings, Dec. 31, 2010 9,000

Following is selected financial information for Boardwalk for the year ended December 31, 2011.

              
  Retained earnings, Dec. 31, 2011 $ 18,750   Cash dividends $ 2,000  
  Net income   11,750   Retained earnings, Dec. 31, 2010   9,000  


Required:
Prepare the 2011 statement of Retained earnings for Boardwalk. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

Boardwalk
Statement of Owner’s Equity
For Year Ended December 31, 2011
  Retained earnings, Dec. 31, 2010 correct $ 9,000 correct  
  Add: Net income correct 11,750 correct  
  
  20,750 correct  
  Less: Cash dividends correct -2,000 correct  
  
  Retained earnings, Dec. 31, 2011 correct $ 18,750 correct  
  

The following is selected financial information for Sun Energy Company for the year ended December 31, 2011: revenues, $82,000; expenses, $63,796; net income, $18,204. Required: Prepare the 2011 calendar-year income statement for Sun Energy Company. (Input all amounts as positive values. Omit the "$" sign in your response.)

The following is selected financial information for Sun Energy Company for the year ended December 31, 2011: revenues, $82,000; expenses, $63,796; net income, $18,204.

Required:
Prepare the 2011 calendar-year income statement for Sun Energy Company. (Input all amounts as positive values. Omit the "$" sign in your response.)

Sun Energy Company
Income Statement
For Year Ended December 31, 2011
  Revenues correct $ 82,000 correct  
  Expenses correct 63,796 correct  
  
  Net income correct $ 18,204 correct  
  

The following is selected financial information for Affiliated Company as of December 31, 2011: liabilities, $41,638; equity, $67,362; assets, $109,000.

The following is selected financial information for Affiliated Company as of December 31, 2011: liabilities, $41,638; equity, $67,362; assets, $109,000.

Required:
Prepare the balance sheet for Affiliated Company as of December 31, 2011. (Omit the "$" sign in your response.)

Affiliated Company
Balance Sheet
December 31, 2011
  Assets correct $ 109,000 correct  
  
 Total Assets $ 109,000 correct  
  

  Liabilities correct $ 41,638 correct  
  Equity correct 67,362 correct  
  
 Total Liabilities and Equity $ 109,000 correct  
  

The following table contains financial information from 5 different companies:


The following table contains financial information from 5 different companies:



Company
A
Company
B
Company
C
Company
D
Company
E

  December 31, 2010
















      Assets
$
37,000  

$
28,860  

$
23,680  

$
65,860

$
101,010


      Liabilities

30,340  


20,202  


12,787  


45,443


?      


  December 31, 2011
















      Assets

40,000  


28,800  


?      


72,800


110,400


      Liabilities

?      


19,584  


13,132  


34,944


87,216


  During year 2011
















      Stock issuances

6,000  


1,400  


9,750  


?    


6,500


      Net income (loss)

8,840  


?      


1,100  


10,439


7,482


      Cash dividends

3,500  


2,000  


5,875  


0


11,000


Required:
Answer the following questions about Company A (Omit the "$" sign in your response):

1a.
What is the amount of equity on December 31, 2010?

  Amount of equity
$ 6,660 correct  

1b.
What is the amount of equity on December 31, 2011?

  Amount of equity
$ 18,000 correct  

1c.
What is the amount of liabilities on December 31, 2011?

  Amount of liabilities 
$ 22,000 correct  

 
Explanation:
Company A: 
  





a.
  Equity on December 31, 2010:





  Assets
$
37,000



  Liabilities

(30,340
)

  






 Equity
$
6,660


   









b.
 Equity on December 31, 2011:





 Equity, December 31, 2010
$
6,660



 Plus stock issuances

6,000



 Plus net income

8,840



 Less cash dividends

(3,500
)

  






 Equity, December 31, 2011
$
18,000


  









c.
 Amount of liabilities on December 31, 2011:





 Assets
$
40,000



 Equity

(18,000
)

  






 Liabilities
$
22,000


  









Answer the following questions about Company B (Omit the "$" sign in your response):

2a.
What is the amount of equity on December 31, 2010?

  Amount of equity
$ 8,658 correct  

2b.
What is the amount of equity on December 31, 2011?

  Amount of equity
$ 9,216 correct  

2c.
What is net income for year 2011?

  Net income
$ 1,158 correct  

 
Explanation
Explanation:
Company B:

a. and b.

12/31/2010

12/31/2011

  Equity:




    Assets
$
28,860


$
28,800


    Liabilities

(20,202
)


(19,584
)

  








    Equity
$
8,658



9,216


  
















c.
  




  Net income for 2011:




    Equity, December 31, 2010
$
8,658


    Plus stock issuances

1,400


    Plus net income

   ?


    Less cash dividends

(2,000
)

  




    Equity, December 31, 2011
$
9,216


  









  
Therefore, net income must have been   $ 1,158.

3.
Calculate the amount of assets for Company C on December 31, 2011. (Omit the "$" sign in your response)

  Amount of Assets
$ 29,000 correct  

Explanation:
Company C:
First, calculate the beginning balance of equity:


Dec. 31, 2010
  Assets

$
23,680


  Liabilities


(12,787
)

  





  Equity

$
10,893


  










Next, find the ending balance of equity as follows:

  




  Equity, December 31, 2010
$
10,893


  Plus stock issuances

9,750


  Plus net income

1,100


  Less cash dividends

(5,875
)

  




  Equity, December 31, 2011
$
15,868


  









Finally, find the ending amount of assets by adding the ending balance of equity to the ending balance of liabilities:


Dec. 31, 2011

  Liabilities

$
13,132



  Equity


15,868



  






  Assets

$
29,000



  









4.
Calculate the amount of stock issuances for Company D during year 2011. (Omit the "$" sign in your response):









 Amount of stock issuances
$  


Explanation:
Company D:
First, calculate the beginning and ending owner’s equity balances:


12/31/2010

12/31/2011

  Assets
$
65,860


$
72,800


  Liabilities

(45,443
)


(34,944
)

  








  Equity
$
20,417



37,856


  
















Then, find the amount of stock issuances during 2011:

  



  Equity, December 31, 2010
$
20,417

  Plus stock issuances

?

  Plus net income

10,439

  Less cash dividends

0

  



  Equity, December 31, 2011
$
37,856

  







Thus, stock issuances must have been: $ 7,000

5.
Calculate the amount of liabilities for Company E on December 31, 2010. (Omit the "$" sign in your response):

  Amount of Liabilities
$  


Explanation:
Company E:
First, compute the balance of equity as of December 31, 2011:
 
  

  Assets

$
110,400


  Liabilities


(87,216
)

  





  Equity

$
23,184


  









 
Next, find the beginning balance of equity as follows:

  




  Equity, December 31, 2010
$
?


  Plus stock issuances

6,500


  Plus net income

7,482


  Less cash dividends

(11,000
)

  




  Equity, December 31, 2011
$
23,184


  









Thus, the beginning balance of equity was $20,202.

Finally, find the beginning amount of liabilities by subtracting the beginning balance of equity from the beginning balance of assets:


Dec. 31, 2010
  Assets

$
101,010


  Equity


(20,202
)

  





  Liabilities

$
80,808