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Balance Sheet

1. What was the amount of cash on January 1, 2002?
2. How much did the change in accounts receivable during 2002 contribution to the change in cash?
3. What were the total current assets at the end of 2001?
4. What was the amount of the gain on the sale of the range?
5. What were the total purchase of equipment during 2002?
6. What was the depreciation expense for 2002?
7. How much LTD was paid during 2002?
8. What was the amount of dividends paid during 2002?
9. Based on the above, what amount of dividends will be paid during 2003?
10. What was the net income for 2002?

See attached file for full problem description.

Natkey Inn
Condensed Balance Sheets
December 31,2001 and 2002
Assets 2001 2002
Cash $30 $40
Marketable securities 50 50
Accounts receivable 100 95
Inventories 20 25
Investments 100 60

Property and Equipment
Land 500 500
Building 5000 6000
Equipment 1000 1100
Accumulated depreciation -1600 -2000
Net Property and Equipment 4900 5600
Total Assets $5,200 $5,870

Liabilties and Owner's Equity
Current Liabilities
Accounts payable 60 70
Dividends payable 30 50
Current portion of LTC 100 130
Total 190 250
Long-term debt 4000 4370
Capital stock 700 700
Retained earnings 310 550
Total liabilities and Owner's Equity $5,200 $5,870

Additional Information
1. Dividends declared during 2002 totaled $100000.
2. Investments costing $50000 were sold for $350000 during 2002.
3. Only one depreciable asset was sold during the 2002. A range cost $10000, depreciated to $2000, was sold for $5000.
4. Long-term debt was borrowed to partially finance the building purchase.

Attachments

Solution Preview

Natkey Inn
Condensed Balance Sheets
December 31,2001 and 2002 All figures taken to be in '000
Assets 2001 2002
Cash $30 $40
Marketable securities 50 50
Accounts receivable 100 95
Inventories 20 25
Investments 100 60

Property and Equipment
Land 500 500
Building 5000 6000
Equipment 1000 1100
Accumulated depreciation -1600 -2000
Net Property and Equipment 4900 5600
Total Assets $5,200 $5,870

Liabilties and Owner's Equity
Current Liabilities
Accounts payable 60 70
Dividends payable 30 50
Current portion of LTC 100 130
Total 190 250
Long-term debt 4000 4370
Capital stock 700 700
Retained earnings 310 550
Total liabilities and Owner's ...

Solution Summary

The solution explains various calculations relating to the balance sheet

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