Amount of cash-current assets at the biginning

Question

Problem:

			The Texan
			Condensed Balance Sheet
			December 31, 20X1 and 20X2
			20X1	20X2
Cash			$10,000	$5,000
Accounts receivable			126500	118500
Investments(long-term)			10000	25000
Equipment			800000	925000
Accumulated depreciation			-20000	-64000
Total assets			$926,500	$1,009,500
Current liabilities
Accounts payable			$18,000	$21,000
Note payable(current)			25000	42000
Dividend payable			5000	6000
Noncurrent liabilities
Note payable			675000	690000
Noncurrent liabilities			100000	105000
Paid-in capital in excess of par			70000	95000
Treasury stock			-20000	-30000
Retained earnings			$53,500	$80,500
Total liabilities and owners' equity			$926,500	$1,009,500

Additional Information:

a. Assume equipment costing $25000 and depreciated down to $10000 was sold for $12000 during 20X2.

b. Assume all current liabilities at the end of the year are paid during the following year.

c. Assume retained earning is impacted only by depreciation of dividends during the year and net earnings for the year.                   
                   
Required to do:

Question 1. What is the amount of cash at the beginning of 20X1?

Question 2. What are the current assets at the biginning of 20X2?

Question 3. What is the amount of net working capital at the end of 20X1?

Question 4. How has the change in accounts payable during 20X2 affected cash at the end of 20X2?

Question 5. What is thenet book value of the Texan's equipment at the end of 20X2?

Question 6. Based on the above, what were the net earnings for the Texan for 20X2?

Question 7. If the changes in the common stock and paid-in capital in excess of par from 20X1 to 20X2 are from the sale of additional shares, what was the selling price per share? (Assume 10000 shares were sold)

Question 8. How much long-term debt was borrowed during 20X2?

Question 9. What was the total gain and loss on equipment sales?

Question 10. What were purchases of equipment during 20X2?

Question 11. What was the depreciation expense for 20X2?