Question: The following financial statements and information
The following financial statements and information are available for Blythe Industries Inc.:
Additional Information
1. Sold land that cost $40,000 for $44,000.
2. Sold equipment that cost $30,000 and had accumulated depreciation of $20,000 for $18,000.
3. Purchased new equipment for $190,000.
4. Sold marketable securities that were classified as availablefor-sale and that cost $40,000 for $70,000.
5. Purchased new marketable securities, classified as available for-sale, for $104,000.
6. Paid $20,000 on the principal of the long-term note.
7. Paid off a $100,000 bond issue and issued new bonds for $200,000. 8. Sold 100 shares of treasury stock at its cost.
9. Issued some new common stock.
10. Issued some new $50 par preferred stock.
11. Paid dividends.
(Note: The only transactions to affect retained earnings were net income and dividends.)
Required:
Organize the class into three sections and divide each section into groups of three to five students. Assign each section of groups an activity section of the statement of cash flows (operating activities, investing activities, or financing activities).
Group Task
Prepare your assigned portion of the statement of cash flows. Have a representative of your section put your activity section of the statement of cash flows on the board. As each section adds its information on the board, the full statement of cash flows will be presented.
Class Discussion
Have the class finish the statement of cash flows by computing the net change in cash. Also have the class answer the following questions:
a. What is the cost per share of the treasury stock?
b. What was the issue price per share of the preferred stock?
c. What was the book value of the equipment sold?
Transcribed Image Text:
Balance Sheets As of December 31 2017 2016 Assets Cash Accounts recelvable Inventory Marketable securitles (avallable for sale) Equipment Accumulated depreciation $ 160,200 103,200 186,400 284,000 650,000 (310,000) 80,000 $1,153,800 $120,600 85,000 171,800 220,000 490,000 (240,000) 120,000 $967,400 Land Total assets Liabilitles and equity Llabilities Accounts payable (inventory) Notes payable-Long-term Bonds payable $ 36,400 $ 66,200 250,000 100,000 416,200 230,000 200,000 466,400 Total labilities Stockholders' equity Common stock, no par Preferred stock, $50 par Pald-In capital in excess of par-Preferred stock Total pald-In capital Retained earnings Less: Treasury stock Total stockholders' equity Total llabilitles and stockholders' equity 240,000 110,000 200,000 100,000 26,800 326,800 264,400 (40,000) 551,200 $967,400 34,400 384,400 333,000 (30,000) 687,400 $1,153,800 Income Statement For the Year Ended December 31, 2017 $1,050,000 (766,500) Sales revenue Cost of goods sold Gross profit Operating expenses Supplies expense Salaries expense Depreclation expense Total operating expenses Operating Income Nonoperating Items Interest expense Gain from the sale of marketable securities Galn from the sale of land and equipment 283,500 $20,400 92,000 90,000 (202,400) 81,100 (16,000) 30,000 12,000 $ 107,100 Net Income
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