The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also.

WRIGHT COMPANY
Comparative Balance Sheets
December 31, 2016 and 2015
($ in 000s)

2016 2015

Assets

Cash $ 109 $ 70

Accounts receivable 110 115

Short-term investment 52 24

Inventory 115 110

Land 82 100

Buildings and equipment 615 480

Less: Accumulated depreciation (163) (115)

$ 920 $ 784

Liabilities

Accounts payable $ 35 $ 43

Salaries payable 6 8

Interest payable 7 5

Income tax payable 7 11

Notes payable 0 27

Bonds payable 234 180

Shareholders' Equity

Common stock 355 280

Paid-in capitalâexcess of par 161 140

Retained earnings 115 90

$ 920 $ 784

WRIGHT COMPANY
Income Statement
For Year Ended December 31, 2016
($ in 000s)

Revenues:

Sales revenue $ 460

Expenses:

Cost of goods sold $ 210

Salaries expense 67

Depreciation expense 48

Interest expense 17

Loss on sale of land 4

Income tax expense 64 410

Net income $ 50

Additional information from the accounting records:

a. Land that originally cost $18,000 was sold for $14,000.

b.
The common stock of Microsoft Corporation was purchased for $28,000 as a short-term investment not classified as a cash equivalent.

c. New equipment was purchased for $135,000 cash.

d. A $27,000 note was paid at maturity on January 1.

e. On January 1, 2016, bonds were sold at their $54,000 face value.

f. Common stock ($75,000 par) was sold for $96,000.

g. Net income was $50,000 and cash dividends of $25,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 5,000 should be entered as 5).)

WRIGHT COMPANY

Statement of Cash Flows

For year ended December 31, 2016

($ in 000s)

Cash flows from operating activities:

Cash inflows:

Cash outflows:

Net cash flows from operating activities.

Cash flows from investing activities:

Net cash flows from investing activities

Cash flows from financing activities:

Net cash flows from financing activities

Cash balance, January 1

Cash balance, December 31

Question

The comparative balance sheets for 2016 and 2015 and the statement of income for 2016 are given below for Wright Company. Additional information from Wright's accounting records is provided also.

WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
	2016		2015
Assets
Cash	$	109	$	70
Accounts receivable		110		115
Short-term investment		52		24
Inventory		115		110
Land		82		100
Buildings and equipment		615		480
Less: Accumulated depreciation		(163)		(115)

	$	920	$	784

Liabilities
Accounts payable	$	35	$	43
Salaries payable		6		8
Interest payable		7		5
Income tax payable		7		11
Notes payable		0		27
Bonds payable		234		180
Shareholders' Equity
Common stock		355		280
Paid-in capitalâexcess of par		161		140
Retained earnings		115		90

	$	920	$	784

WRIGHT COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s)
Revenues:
Sales revenue			$	460
Expenses:
Cost of goods sold	$	210
Salaries expense		67
Depreciation expense		48
Interest expense		17
Loss on sale of land		4
Income tax expense		64		410

Net income			$	50

Additional information from the accounting records:
a.	Land that originally cost $18,000 was sold for $14,000.
b.	The common stock of Microsoft Corporation was purchased for $28,000 as a short-term investment not classified as a cash equivalent.
c.	New equipment was purchased for $135,000 cash.
d.	A $27,000 note was paid at maturity on January 1.
e.	On January 1, 2016, bonds were sold at their $54,000 face value.
f.	Common stock ($75,000 par) was sold for $96,000.
g.	Net income was $50,000 and cash dividends of $25,000 were paid to shareholders.

Required:

Prepare the statement of cash flows of Wright Company for the year ended December 31, 2016. Present cash flows from operating activities by the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands (i.e., 5,000 should be entered as 5).)

WRIGHT COMPANY
Statement of Cash Flows
For year ended December 31, 2016
($ in 000s)
Cash flows from operating activities:
Cash inflows:

Cash outflows:






Net cash flows from operating activities.
Cash flows from investing activities:






Net cash flows from investing activities
Cash flows from financing activities:






Net cash flows from financing activities


Cash balance, January 1
Cash balance, December 31

WRIGHT COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
	2016		2015
Assets
Cash	$	130	$	120
Accountsreceivable		163		165
Short-terminvestment		62		24
Inventory		162		160
Land		122		150
Buildings andequipment		770		580
Less: Accumulated depreciation		(223)		(165)

	$	1,186	$	1,034

Liabilities
Accountspayable	$	50	$	53
Salariespayable		4		6
Interestpayable		8		5
Income taxpayable		9		15
Notes payable		0		38
Bonds payable		356		280
Shareholders' Equity
Common stock		445		380
Paid-incapitalâexcess of par		217		190
Retainedearnings		97		67

	$	1,186	$	1,034

WRIGHT COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s)
Revenues:
Sales revenue			$	660
Expenses:
Cost of goodssold	$	310
Salariesexpense		94
Depreciationexpense		58
Interestexpense		10
Loss on sale ofland		3
Income taxexpense		95		570

Netincome			$	90

Additionalinformation from the accounting records:
a.	Land that originally cost$28,000 was sold for $25,000.
b.	The common stock of Microsoft Corporation was purchased for$38,000 as a short-term investment not classified as a cashequivalent.
c.	New equipment was purchased for$190,000 cash.
d.	A $38,000 note was paid atmaturity on January 1.
e.	On January 1, 2016, bonds weresold at their $76,000 face value.
f.	Common stock ($65,000 par) wassold for $92,000.
g.	Net income was $90,000 and cashdividends of $60,000 were paid to shareholders.

DUX COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in 000s)
		2016		2015
Assets
Cash	$	59	$	23
Accountsreceivable		34		50
Dividendsreceivable		6		5
Inventory		55		50
Long-terminvestment		19		16
Land		75		55
Buildings andequipment		266		280
Less: Accumulateddepreciation		(62)		(80)

	$	452	$	399

Liabilities
Accountspayable	$	31	$	33
Salariespayable		1		6
Interestpayable		8		5
Income taxpayable		7		8
Notes payable		20		0
Bonds payable		110		85
Less: Discount on bonds		(3)		(4)
Shareholders' Equity
Common stock		210		200
Paid-incapitalâexcess of par		24		20
Retainedearnings		51		46
Less: Treasury stock (atcost)		(7)		0

	$	452	$	399

Unlock all answers

Related questions

Weekly leaderboard

DUX COMPANY Income Statement For Year Ended December 31, 2016 ($ in 000s)
Revenues
Sales revenue	$	230
Dividend revenue		6	$	236

Expenses
Cost of goods sold		135
Salaries expense		31
Depreciation expense		6
Interest expense		8
Loss on sale of building		5
Income tax expense		16		201

Netincome			$	35

a.	A building that originally cost$32,000, and which was three-fourths depreciated, was sold for$3,000.
b.	The common stock of ByrdCorporation was purchased for $3,000 as a long-terminvestment.
c.	Property was acquired by issuinga 12%, seven-year, $20,000 note payable to the seller.
d.	New equipment was purchased for$18,000 cash.
e.	On January 1, 2016, bonds weresold at their $25,000 face value.
f.	On January 19, Dux issued a 5% stock dividend (1,000 shares).The market price of the $10 par value common stock was $14 pershare at that time.
g.	Cash dividends of $16,000 werepaid to shareholders.
h.	On November 12, 500 shares of common stock were repurchased astreasury stock at a cost of $7,000.