Daniel’s Auto Factory
Period 3 Quiz
Daniel’s Auto Factory manufactures an extensive line of premium auto parts for sale throughout the United States. Its balance sheet for the first quarter of a recent year is presented along with an analysis of selected accounts and transactions:
|
Daniel’s Auto Factory |
March 31 |
January 1 |
|
Assets |
||
|
Current Assets |
||
|
Cash |
$ 921,505 |
$ 528,787 |
|
Accounts Receivable |
1,602,582 |
1,463,901 |
|
Inventories |
2,748,788 |
2,504,908 |
|
Supplies |
581,508 |
224,001 |
|
Other |
59,219 |
59,219 |
|
Total Current Assets |
5,913,602 |
4,780,816 |
|
Long-Term Assets |
||
|
Equipment |
14,010,796 |
12,929,675 |
|
Accumulated Depreciation |
-2,744,388 |
-2,468,084 |
|
Equipment (Net) |
11,266,408 |
10,461,591 |
|
Land |
574,130 |
624,185 |
|
Intangible Assets Net of Amortization $259,641 3/31 & $253,740 1/1 |
330,359 |
336,260 |
|
Other |
100,206 |
111,588 |
|
Total Long-Term Assets |
12,271,103 |
11,533,624 |
|
Total Assets |
$18,184,705 |
$16,314,440 |
|
Liabilities and Equity |
||
|
Current Liabilities |
||
|
Accounts Payable |
1,279,455 |
998,520 |
|
Accrued Liabilities |
714,473 |
550,386 |
|
Income Tax Payable |
11,198 |
54,229 |
|
Short-Term Debt |
0 |
1,000,000 |
|
Current Maturities of Long-Term Debt |
429,562 |
134,538 |
|
Total Current Liabilities |
2,434,688 |
2,737,673 |
|
Long-Term Liabilities |
||
|
Long-Term Debt |
4,193,290 |
2,183,877 |
|
Deferred Income Tax |
275,508 |
275,508 |
|
Total Long-Term Liabilities |
4,468,798 |
2,459,385 |
|
Total Liabilities |
6,903,486 |
5,197,058 |
|
Stockholders’ Equity |
||
|
Common Stock |
91,029 |
91,029 |
|
Additional Paid-in Capital |
9,703,985 |
9,703,985 |
|
Treasury Stock |
-1,015,899 |
-1,015,899 |
|
Retained Earnings |
2,502,104 |
2,338,267 |
|
Total Equity |
11,281,219 |
11,117,382 |
|
Total Liabilities & Equity |
$18,184,705 |
$16,314,440 |
Analysis of Selected Accounts and Transactions:
a. Net income was $163,837
b. Depreciation and amortization totaled $282,205
c. No equipment was sold during the period.
d. No intangible assets were acquired or sold.
e. Proceeds from issuance of long-term debt were $4,659,466, and principal payments were $2,355,029
f. No dividends were declared or paid
Required
1. Prepare a statement of cash flows using the indirect method for the three month period.
2. Discuss the strengths and weaknesses Daniel’s Auto Factory based on the statement of cash flows.
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Rating:
/5
Solution: Down Payment to start working
Solution: Daniel’s Auto Factory - Statement of Cash Flows