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	$24,080	$16,800
Accounts receivable		31,200
Inventories		69,200
Prepaid rent	1,620	1,200
Property, plant, and equipment	212,000	192,000
Accumulated depreciation	(50,200)	(36,000)
Total assets	$307,100	$274,400
Liabilities and Stockholders' Equity
Accounts payable	$36,400	$33,200
Accrued Liabilities	10,000	11,200
Notes payable (long-term)	126,000	142,000
Contributed capital	42,000	21,000
Retained earnings	92,700	67,000
Total liabilities and stockholders' equity	$307,100	$274,400

MONOPOLY CORPORATION
Income Statement
Year Ended December 31
Sales		$445,500
Expenses
Cost of goods sold	$282,000
Selling, general and administrative expenses	90,000
Depreciation expense
Interest expense	8,200
Income taxes		410,600
Net income		$34,900

MONOPOLY CORPORATION
Cash Flow Statement
Year End December 31
Cash flows from operating activities
Net income	$34,900
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	14,200
Change in current assets and current liabilities
Accounts Receivable	(3,200)
Inventories	$(16,000)
Prepaid Rent
Accounts Payable	$3,200
Accrued Liabilities
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant, and equipment	(20,000)
Net cash provided by (used for) investing activities	(20,000)
Financing activities
Additional capital contributed by stockholders
Payments on long-term debt	(16,000)
Payment of cash dividends
Net cash provided by (used for) financing activities
Increase in cash and cash equivalents	7,280
Cash and cash equivalents, beginning of period	16,800
Cash and cash equivalents, end of period	$24,080

Answer 1

Monopoly Corporation

Comparitive Balance Sheet

December 31

Assets	Current	Prior Year
Cash	$ 24,080	$ 16,800
Accounts Receivable	34,400	31,200
Inventories	85,200	69,200
Prepaid Rent	1,620	1,200
Property, Plant and Equipment	212,000	192,000
Accumulated Depreciation	(50,200)	(36,000)
Total Assets	$ 307,100	$ 274,400
Liabilities and Stockholders' Equity
Accounts Payable	$ 36,400	$ 33,200
Accrued Liabilities	10,000	11,200
Notes Payable ( Long Term)	126,000	142,000
Contributed Capital	42,000	21,000
Retained Earnings	92,700	67,000
Liabilities and Stockholders' Equity	$ 307,100	$ 274,400

Monopoly Corporation

Income Statement

For the year ended December 31

Sales		$ 445,500
Expenses
Cost of Goods Sold	$ 282,000
Selling, General and Administrative Expenses	90,000
Depreciation Expense	14,200
Interest Expense	8,200
Income Taxes	16,200	410,600
Net Income		34,900

Monopoly Corporation

Cash Flow Statement

For the year ended December 31

Cash Flows from Operating Activities
Net Income	$ 34,900
Adjustments to reconcile net income to net cash provided by operations
Depreciation	14,200
Change in current assets and current liabilities
Accounts Receivable	(3,200)
Inventories	(16,000)
Prepaid Rent	(420)
Accounts Payable	3,200
Accrued Liabilities	(1,200)
Net cash provided by Operating Activities	31,480
Cash flows from Investing Activities
Purchase of Property, Plant and Equipment	(20,000)
Net cash used for Investing Activities	(20,000)
Financing Activities
Additional Capital Contributed by Stockholders	21,000
Payment of Long-term Debt	(16,000)
Payment of Cash Dividends	(9,200)
Net cash used for Financing Activities	(4,200)
Increase in Cash and Cash Equivalents	7,280
Cash and Cash Equivalents, beginning of period	16,800
Cash and Cash Equivalents, end of period	24,080