(Solved by Humans)-Presented below are the balance sheets of Trout Corporation as of

Question

Additional information:

here is a prior period adjustment to retained earnings of $20. See additional information #6 on the assignment. You should adjust the beginning balance to $388 and add $20 to the Cash paid for income taxes.

Depreciation expense is included in the Selling & Administrative Expenses total of $456. You will need to calculate depreciation expense and then back it out of the S&A expenses. To calculate Cash paid for operating expenses you will need to take the S&A expenses minus the depreciation expense and relate it to the changes in the Accrued Expenses account on the balance sheet.

Presented below are the balance sheets of Trout Corporation as of December 31, Year 1
and Year 2, and the income statement for the year ended December 31, Year 2. The
statement of retained earnings for the year ended December 31, Year 2 is on the next page.
All dollars are in thousands.

Trout Corporation
Balance Sheets
December 31, Year 1 and Year 2
Year 1

Year 2

Cash
Treasury Bills & Commercial Paper
Accounts Receivable, net
Inventories
Land
Plant and Equipment
Accumulated Depreciation
Total Assets

$204
143
495
780
250
900
(170)
$2,602

$403
106
695
895
350
1,398
(295)
$3,552

Liabilities & Stockholders? Equity
Accounts Payable
Dividends Payable
Accrued Liabilities
Notes Payable, Long-Term
Bonds Payable
Bond Discount
Common Stock, Par Value $20
Additional Paid-In Capital
Retained Earnings
Total Liabilities & Stockholders? Equity

$700
-168
-500
(18)
600
244
408
$2,602

$650
10
413
450
500
(16)
640
304
601
$3,552

Assets

Trout Corporation
Income Statement
For the Year Ended December 31, Year 2
Net Sales Revenue
Operating Expenses:
Cost of Goods
Selling & Administrative Expenses
Operating Income
Other Income (Expense):
Interest Expense
Gain on Sale of Equipment

$2,000
$1,126
456

$(80)
5

1,582
$418



(75)

Pre-Tax Income from Continuing Operations
Less: Income Tax Expense:
Net Income

$343
90
$253

Trout Corporation
Statement of Retained Earnings
For the Year Ended December 31, Year 2
Retained Earnings as of January 1, Year 2
Add:
Net Income
Deduct: Dividend Declared, October 10, Year 2
Retained Earnings, December 31, Year 2

$388
$ 253
(40)

213
$601

Additional Information:
1. On April 15, Year 2, Trout issued 2 shares of its common stock for land having a fair
value
of $100.
2. On May 25, Year 2, Trout borrowed money from an insurance company. The
underlying
promissory note bears interest at 15% and is payable in three equal annual
installments of
$150. The first payment is due on May 25, Year 3.
3. On July 1, Year 2, Trout sold equipment costing $52 for $33 cash.
4. On October 10, Year 2, Trout declared a cash dividend of $40 on its common stock.
5. The Selling and Administrative Expense account includes Depreciation Expense.