Chapter 10
The Statement of Cash Flow
520
AP-13B (
2
3
6
)
The balance sheet and income statement for Venus Company are presented below.
Venus Company
Balance Sheet
As at December 31
2016
2015
Assets
Cash
$191,410
$94,000
Accounts Receivable
30,000
34,000
Inventory
42,000
50,000
Total Current Assets
263,410
178,000
Property, Plant and Equipment
Land
90,000
100,000
Building
125,000
130,000
Less: Accumulated Depreciation
(62,000)
(60,000)
Total Assets
$416,410
$348,000
Liabilities
Accounts Payable
$76,000
$65,000
Current Portion of Bank Loan
45,000
40,000
Current Liabilities
121,000
105,000
Non-Current Portion of Bank Loan
120,000
95,000
Total Liabilities
241,000
200,000
Shareholders’ Equity
Common Shares
85,000
75,000
Retained Earnings
90,410
73,000
Shareholders’ Equity
175,410
148,000
Liabilities and Shareholders’ Equity
$416,410
$348,000
Venus Company
Income Statement
For the Year Ended December 31, 2016
Sales
$380,000
Cost of Goods Sold
255,000
Gross Profit
125,000
Expenses
Depreciation Expense
42,000
Other Operating Expense
28,500
Total Expenses
70,500
Operating Income
54,500
Other Revenue (Expenses)
Loss on Sale of Building
(5,400)
Gain on Sale of Land
3,200
Operating Income before Tax
52,300
Income Tax Expense
15,690
Net Income (Loss)
$36,610
Notes: Building and land were purchased for amounts of $115,000,
and $200,000 respectively.
The company declared and paid dividends during the year.
The company did not pay off any amount of the bank loan.
