Intermediate Accounting III

Paper details:

CM Corporation
Balance Sheet

December 31, 2011

Assets %

Current assets
Cash and cash equivalents $120,670
Accounts receivable 576,454
Allowance for doubtful accounts (84,975)
Inventory 847,460
Prepaid expenses 18,841
Other current assets 4,612
Total current assets 1,483,062 0.65

Property, plant and equipment 1,100,105
Accumulated depreciation (591,965)
Net fixed assets 508,140 0.22

Other Assets
Investments 100,150
Goodwill 87,740
Other intangible assets 108,700
296,590 0.13

Total assets $2,287,792 1.00

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable $315,395
Dividends payable 48,000
Unearned revenue 73,500
Accrued liabilities 408,303
Total current liabilities 845,198 0.37

Long-term liabilities 278,525 0.12

Stockholders’ equity
Contributed capital
Common stock, $2 par value (4,000,000 shares
authorized),460,000 shares issued of which 440,000 shares
are outstanding 920,000
Paid-in capital common stock 105,000
Total contributed capital 1,025,000

Accumulated other comprehensive income 0
Retained earnings 539,069

Less common stock in treasury, at cost (400,000)
Total stockholders’ equity 1,164,069 0.51

Total liabilities and stockholders’ equity $2,287,792 1.00

CM Corporation
Income Statement
For the Years Ended

2011 %

Revenue
Net product sales revenue $8,984,852
Service revenue 975,860
Total revenue 9,960,712 1.00
Cost of goods sold
Products 5,356,018
Services 445,637
Total cost of goods sold 5,801,655
Gross profit 4,159,057 0.42

Operating expenses
Advertising 123,869
Bad debt expense 28,640
Depreciation and amortization 125,500
Dues and subscriptions 19,730
Equipment expenses 64,781
Insurance 90,144
Legal and accounting fees 87,650
Miscellaneous 12,010
Office expense 214,138
Payroll taxes 131,170
Property taxes 93,400
Repair and maintenance 37,543
Research and development 278,000
Telephone 21,085
Travel and entertainment 60,402
Utilities 37,876
Wages – Employees 954,688
Wages – Officers 650,000
Total operating expenses 3,030,626 0.30

Income (loss) from operations 1,128,431 0.11

Other income and (expense)
Interest expense (27,800)
Gain (loss) on disposal of assets (26,950)
Investment income 9,230
Total other income (expense) (45,520)

Income (loss) before income taxes 1,082,911 0.11
Income tax (expense) benefit (379,019)

Net income (loss) $703,892 0.07

CM Corporation
Statement of Cash Flows
( Indirect Method )
For the Years Ended

2011

Cash flows from operating activities
Net income (loss) $703,892
Adjustments to reconcile net income
to Net cash provided from operating activities
Depreciation and amortization 125,500
Net (gain) loss on assets 26,950
(Increase) decrease in accounts receivable (188,643)
Increase (decrease) in allowance for doubtful accounts (7,564)
(Increase) decrease in inventory (125,360)
(Increase) decrease in prepaid expenses (14,650)
(Increase) decrease in other current assets 4,612
Increase (decrease) in accounts payable 263,400
Increase (decrease) in unearned revenue 46,820
Increase (decrease) in interest payable 3,456
Increase (decrease) in wages and payroll taxes payable (5,478)
Increase (decrease) in income taxes payable (278,950)

Total adjustments (149,907)
Net cash provided by operating activities 553,985

Cash flows from investing activities
(Purchase) of fixed assets (274,300)
(Purchase) of intangibles 0
(Purchase) of investments (12,650)
Net cash used by investing activities (286,950)

Cash flows from financing activities
Dividends paid (32,000)
Net cash used by financing activities (32,000)

Net increase (decrease) in cash and cash equivalents 235,035

Cash and cash equivalents at beginning of period (114,365)

Cash and cash equivalents at end of period $120,670

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