Acc/531 Week 3 Balance Sheet Analysis

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Balance Sheet 2004 2003 Edwards, Inc. has prepared the following comparative balance sheets
Cash $198,000 $102,000 for 2003 and 2004:
Receivables $106,000 $78,000 2004 2003
Inventory $100,000 $120,000
Prepaid expenses $12,000 $18,000 Cash $ 198,000 $102,000
Plant assets $840,000 $700,000 Receivables 106,000 78,000
Accumulated depreciation $(300,000) $(250,000) Inventory 100,000 120,000
Patent $102,000 $116,000 Prepaid expenses 12,000 18,000 $1,058,000 $884,000 Plant assets 840,000 700,000
Accounts payable $102,000 $112,000 Accumulated depreciation (300,000) (250,000)
Accrued liabilities $40,000 $28,000 Patent 102,000 116,000
Mortgage payable $- $300,000
Preferred
Additional paid in capital - Preferred stock $80,000 $-
Common stock $400,000 $400,000 Accounts payable $ 102,000 $112,000
Retained earnings $86,000 $44,000 Accrued liabilities 40,000 28,000 $1,058,000 $884,000 Mortgage payable â�"â�"â�" 300,000 Preferred stock 350,000
Income statement Additional paid-in capital preferred 80,000
Sales $1,320,000 Common stock 400,000 400,000
Cost of sales $726,000 Retained earnings 86,000
for the year ended
Sale of patents $14,000 December 31, 2004.
Cash flow from investing activities $(126,000) (b) From the information above, prepare a schedule of cash provided
Financing activities by operating activities using the direct method.
Issue of preferred stock $430,000
Payment of Mortgage $(300,000)
Dividends paid $(92,000)
Cash flow from financing activities $38,000 Net increase/(decrease) in cash and cash equivalents