Missing amounts from financial statements
The financial statements at the end of Wolverine Realty’s first month of operations are as follows:
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Wolverine Realty Income Statement For the Month Ended April 30, 2014 |
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Fees earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ (a) |
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Expenses: |
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Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$300,000 |
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Rent expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
100,000 |
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Supplies expense . . . . . . |
(b) |
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Utilities expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
20,000 |
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Miscellaneous expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
25,000 |
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Total expenses . . . . . . . |
475,000 |
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Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$275,000 |
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Wolverine Realty Retained Earnings Statement For the Month Ended April 30, 2014 |
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Retained earnings, April 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ (c) |
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Net income for April . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ (d) |
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Less dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
125,000 |
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Increase in retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
(e) |
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Retained earnings, April 30, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ (f ) |
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Wolverine Realty Balance Sheet April 30, 2014 |
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Assets |
Liabilities |
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Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$462,500 |
Accounts payable . . . . . . . . . . . . . . . . |
$100,000 |
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Supplies . . . . . . . . . . . . . . . . . . . . . . . |
12,500 |
Stockholders’ Equity |
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Land . . . . . . . . . . . . . . . . . . . . . . . . . . . |
150,000 |
Capital stock . . . . . . . . . . . . . . . . . . . . |
$375,000 |
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Total assets . . . . . . . . . . . . . . . . . . . . . |
$ (g) |
Retained earnings . . . . . . . . . . . . . . . |
(h) |
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Total stockholders’ equity . . . . . . . . |
(i) |
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Total liabilities and stockholders’ equity |
$ (j) |
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Wolverine Realty Statement of Cash Flows For the Month Ended April 30, 2014 |
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Cash flows from operating activities: |
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Cash received from customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ (k) |
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Deduct cash payments for expenses and payments to creditors . . . . . |
(387,500) |
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Net cash flows from operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$(l) |
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Cash flows used for investing activities: |
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Cash payments for acquisition of land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
(m) |
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Cash flows from financing activities: |
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Cash received from issuing capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ (n) |
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Deduct cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
(o) |
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Net cash flows from financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . |
(p) |
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Net increase (decrease) in cash and April 30, 2014, cash balance . . . . . . . |
$(q) |
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Instructions
By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (q).