ch 12 overall - P12-7B. Shown below are the financial...

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Unformatted text preview: P12-7B. Shown below are the financial statements of Rivera Company. RIVERA COMPANY Comparative Balance Sheets December 31 2010 $ 25,000 23,000 Merchandise inventory 41,000 Property, plant, and equipment $ 73,000 Less: Accumulated depreciation (27,000) 46,000 $135,000 Liabilities and Stockholders' $ 23,000 26,000 20,000 25,000 41,000 $135,000 RIVERA COMPANY Income Statement For the Year Ended December 31, 2010 Sales $286,000 Cost of goods sold 194,000 Gross profit 92,000 Selling expenses $28,000 Administrative expenses 9,000 37,000 Income from operations 55,000 Interest expense 7,000 Income before income taxes 48,000 Income tax expense 10,000 Net income $ 38,000 Additional data: 1. Dividends of $25,000 were declared and paid. 2. During the year equipment was sold for $10,000 cash. This equipment cost $13,000 o of $10,000 at the time of sale. 3. All depreciation expense, $6,000, is in the selling expense category. 4. All sales and purchases are on account. 5. Additional equipment was purchased for $8,000 cash. Instructions (a) Prepare a statement of Cash from operations (b) Compute these cash-b P12-9B. Condensed financial data of Ulrich Company are shown below. ULRICH COMPANY Comparative Balance Sheets December 31 2010 $ 82,700 Accounts receivable 75,800 Inventories 121,900 Investments 89,500 Plant assets 320,000 Accumulated depreciation (49,500) $640,400 $445,050 Liabilities and Stockholders' Equity Accounts payable $ 52,700 Accrued expenses payable 15,100 Bonds payable 140,000 Common stock 250,000 Retained earnings 182,600 $640,400 $445,050 ULRICH COMPANY...
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This note was uploaded on 11/06/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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ch 12 overall - P12-7B. Shown below are the financial...

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