Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over the annual operating period ended December 31, 2005. Cash account balance at December 31, 2004, was $14,000 and the ending cash balance at December 31, 2005, is $27,600.
|
Current Asset Accounts |
Change |
Amount |
|
Cash |
Increased |
$13,600 |
|
Credit card receivables |
Increased |
1,680 |
|
Accounts receivable |
Increased |
1,120 |
|
Inventories |
Increased |
800 |
|
Prepaid expenses |
Decreased |
500 |
|
Current Liability Accounts |
||
|
Accounts payable |
Decreased |
$ 1,100 |
|
Accrued payroll payable |
Increased |
1,200 |
|
Taxes payable |
Decreased |
800 |
Additional information applying to the current year ending December 31,
2005:
a. Net income for the year 2005 was $113,400.
b. Depreciation expense for the year 2005 was $121,500.
c. Furnishings with a book value of $1,400 were sold for $5,400.
d. Equipment with a book value of $2,200 was sold for $1,800.
e. New furnishings were purchased for $14,800.
f. New equipment was purchased for $22,200.
g. A total of $55,600 was paid to reduce long-term debt.
h. Cash dividends of $128,300 were declared and paid.
Using the information provided, complete an SCF, in good form using the indirect method.