comparative balance sheets and the income statements for ellis company are presented 641412

Comparative balance sheets and the income statements for Ellis Company are presented below:

Don't use plagiarized sources. Get Your Custom Essay on

Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!

Order Essay

Ellis Company
Balance Sheets
December 31, Year 1 and Year 2
	Year 2	Year 1
Assets
Current assets:
Cash	$ 45,000	$ 30,000
Accounts receivable	38,000	40,000
Inventory	67,000	60,000
Total current assets	150,000	130,000
Long term investments.	162,000	200,000
Plant and equipment	278,000	150,000
Accumulated depreciation	(52,000)	(50,000)
Total assets	$538,000	$430,000
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$ 36,000	$ 40,000
Accrued liabilities	24,000	30,000
Total current liabilities	60,000	70,000
Bonds payable	20,000	30,000
Mortgage payable	100,000
Deferred income taxes	15,000	20,000
Total liabilities	195,000	120,000
Stockholders’ equity:
Common stock.	295,000	270,000
Retained earnings	48,000	40,000
Total stockholders’ equity	343,000	310,000
Total liabilities and stockholders’ equity	$538,000	$430,000

Ellis Company
Income Statement
For the Year Ended December 31, Year 2
Sales	$150,000
Less cost of goods sold	76,500
Gross margin	73,500
Less operating expenses	16,000
Net operating income	57,500
Less loss on sale of investment	2,500
Income before taxes	55,000
Less income taxes	22,000
Net income	$ 33,000

Summary of transactions for Year2:

* During Year 2, the company sold for cash of $35,500 long term investments with a cost of $38,000 when purchased.

* All sales were on credit.

* The company paid a cash dividend of $25,000.

* Bonds payable of $25,000 were retired by issuing common stock. The bonds retired were equivalent to the market value of the $25,000 stock issued.

* An addition to one of the company’s buildings was completed on December 31,Year 2, at a cost of $128,000. The company gave an interest bearing mortgage for$100,000 and paid $28,000 in cash.

* Bonds payable were sold for $15,000 cash at par value.

Required:

a. Using the indirect method, determine the net cash provided by operating activitiesfor Year 2.

b. Using the direct method, determine the net cash provided by operating activitiesfor Year 2.

c. Using the net cash provided by operating activities figure from either part a or b, prepare a statement of cash flows for Year 2.

Top quality papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional academic writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

Free revisions

If you feel that we missed something, send the order for a free revision. You will have 10 days to send the order for revision after you receive the final paper. You can either do it on your own after signing in to your personal account or by contacting our support.

On-time delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & confidential

We use several checkers to make sure that all papers you receive are plagiarism-free. Our editors carefully go through all in-text citations. We also promise full confidentiality in all our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Type of paper needed:

Pages:

Academic level:

Total price:

$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

You are welcome to choose your academic level and the type of your paper. Our academic experts will gladly help you with essays, case studies, research papers and other assignments.

Admissions

Admission help & business writing

You can be positive that we will be here 24/7 to help you get accepted to the Master’s program at the TOP-universities or help you get a well-paid position.

Reviews

Editing your paper

Our academic writers and editors will help you submit a well-structured and organized paper just on time. We will ensure that your final paper is of the highest quality and absolutely free of mistakes.

Reviews

Revising your paper

Our academic writers and editors will help you with unlimited number of revisions in case you need any customization of your academic papers