Problem:
The Four Star Café
Condensed Balance Sheets
December 31, 2001 and 2002
|
|
|
|
2001 |
2002 |
| Cash |
|
|
|
$15,000 |
$70,000 |
| Marketable Securities |
|
$5,000 |
10000 |
| Accounts receivable |
|
14000 |
10000 |
| Inventory |
|
|
20000 |
24000 |
| Investment |
|
|
10000 |
15000 |
| Equipment |
|
|
320000 |
415000 |
| Accumulated depreciation |
|
-50000 |
-60000 |
| Total Assets |
|
|
334000 |
484000 |
|
|
|
|
|
|
| Current Liabilities |
|
|
|
|
| Accounts payable |
|
|
15000 |
17000 |
| Dividends payable |
|
23000 |
22000 |
| mortgage payable(current) |
|
20000 |
20000 |
| Noncurrent Liabilities |
|
|
|
| mortgage payable(current) |
|
160000 |
200000 |
| Common stock |
|
|
100000 |
110000 |
| Retained earings |
|
|
16000 |
115000 |
| Total liabilities and Owner's Equity |
334000 |
484000 |
Additional information
1. Investments costing $15000 were sold for $20000.
2. Dividends declared during 2002 totaled $40000.
3. The Café's van, which cost $20000, was sold at a loss of $5000. Its net book value on the date of sale was $10000.
4. Marketable securities that cost $10000 were sold for $5000.
5. Assume current liabilityes are paid on a timely basis.
Prepare the SCF for 2002.