Solutions for Problems Done in Class on 9-6 PDF

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PB1-3 Req. 1 CHEESE FACTORY INCORPORATED Income Statement For the Year Ended August 31, 2015 Revenues: Sales Revenue Total Revenues Expenses: Salaries and Wages Expense Utilities Expense Office Expenses Total Expenses Net Income

$1,660,000 1,660,000 955,000 530,000 95,000 1,580,000 $80,000

Req. 2 CHEESE FACTORY INCORPORATED Statement of Retained Earnings For the Year Ended August 31, 2015 Retained Earnings, Beginning Add: Net Income Subtract: Dividends Retained Earnings, Ending

$ 410,000 80,000 (10,000) $ 480,000

PB1-3 (continued) Req. 3 CHEESE FACTORY INCORPORATED Balance Sheet At August 31, 2015 Assets: Cash Accounts Receivable Supplies Prepaid Rent Equipment Total Assets Liabilities: Accounts Payable Notes Payable Salaries and Wages Payable Total Liabilities Stockholders’ Equity: Common Stock Retained Earnings Total Stockholders’ Equity Total Liabilities and Stockholders’ Equity

$

80,000 15,000 25,000 50,000 755,000 $925,000

$ 145,000 30,000 170,000 345,000 100,000 480,000 580,000 $925,000

PB1-3 (continued) Req. 4 CHEESE FACTORY INCORPORATED Statement of Cash Flows For the Year Ended August 31, 2015 Cash Flows from Operating Activities Cash received from customers Cash paid to suppliers and employees Cash Provided by Operating Activities

$ 1,661,000 (1,490,000) 171,000

Cash Flows from Investing Activities Cash paid to purchase equipment Cash Used in Investing Activities

(40,000) (40,000)

Cash Flows from Financing Activities Additional investments by stockholders Cash received from borrowings Repayments of borrowings Dividends paid to stockholders Cash Used in Financing Activities Change in Cash Cash at September 1, 2014 Cash at August 31, 2015

34,000 5,000 (155,000) (10,000) (126,000)

$

5,000 75,000 80,000...