Question

Condensed financial data of Monopoly Corporation appear below:

  

A cash dividend was declared and paid in full to stockholders during the year.

Required:

Solve for the missing numbers. (Enter any deductions and cash outflows as a negative value.)

MONOPOLY CORPORATION
Comparative Balance Sheet
December 31
	Current Year	Prior Year
Assets
Cash	$ 66,410	$ 40,600
Accounts receivable	?	32,900
Inventories	?	70,900
Prepaid rent	3,490	2,900
Property, plant, and equipment	237,500	209,000
Accumulated depreciation	(60,400)	(44,500)
Total assets	$ 380,200	$ 311,800
Liabilities and Stockholders' Equity
Accounts payable	$ 39,800	$ 34,900
Accrued Liabilities	10,000	12,900
Notes payable (long­term)	134,500	159,000
Contributed capital	59,000	29,500
Retained earnings	136,900	75,500
Total liabilities and stockholders' equity	$ 380,200	$ 311,800

MONOPOLY CORPORATION
Income Statement
Year Ended December 31
Sales		$ 513,500
Expenses
Cost of goods sold	$ 299,000
Selling, general and administrative expenses	98,500
Depreciation expense	?
Interest expense	9,900
Income taxes	?	441,200
Net income		$ 72,300

MONOPOLY CORPORATION
Cash Flow Statement
Year End December 31
Cash flows from operating activities
Net income	$ 72,300
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	15,900
Change in current assets and current liabilities
Accounts Receivable	(4,900)
Inventories	$ (24,500)
Prepaid Rent	?
Accounts Payable	$ 4,900
Accrued Liabilities	?
Net cash provided by (used in) operating activities	?
Cash flows from investing activities
Purchase of property, plant, and equipment	(28,500)
Net cash provided by (used for) investing activities	(28,500)
Financing activities
Additional capital contributed by stockholders	?
Payments on long­term debt	(24,500)
Payment of cash dividends	?
Net cash provided by (used for) financing activities	?
Increase in cash and cash equivalents	25,810
Cash and cash equivalents, beginning of period	40,600
Cash and cash equivalents, end of period	$ 66,410

Answer 1

Accounts receivable for current year = 32,900 + 4,900 = $37,800

Inventories for current year = 70,900 + 24,500 = $95,400

Depreciation expense = $15,900

Income taxes = 441,200 - (299,000 + 98,500 + 15,900 + 9,900) = $17,900

Prepaid rent = $(590)

Accrued liabilities = $(2,900)

Net cash provided by (used in) operating activities = 72,300 + 15,900 - 4,900 - 24,500 - 590 + 4,900 - 2,900 = $60,210

Additional capital contributed by stockholders = 59,000 - 29,500 = $29,500

Payment of cash dividend = 136,900 -72,300 - 75,500 = $(10,900)

Net cash provided by (used for) financing activities = 29,500 - 24,500 - 10,900 = $(5,900)