Using the Crash Zone Corporations balance sheet at the end of 2013 and its cash flow

statement for 2014, we can present to you Crash Zones balance sheet at the end of 2014. First
of all, in the part of current assets, Cash has upped from 2013s $8,250 to 2014s $15,731
because of an increase for the companys net cash flow in an amount of $7,481 in 2014. A rise
of $3,178 in Account receivable account has been recorded in the companys cash flow
statement for 2014, so the balance sheet at the end of 2014 has to increase from $7,110 in
2013 to $10,288 in 2014. Likewise in inventory account, the $350 increase this year has to put
to balance sheet from $14,221 to $14,571 this year. And also, we decrease an amount of $102
for the decrease in prepaid assets account on the 2014 balance sheet. As a result, the amount
$1,850 on 2013 balance sheets has been decreased to $1,748.
Oppositely, for current liabilities, we need to record the decreases in accrued expenses
and account payable account in balance sheet at the end of 2014. To be specific, accrued
expenses decreased from 2013s $4,888 to 2014s $4,233 for the $655 reduction in 2014.
Account payable has also lowered from 2013s $13,500 to 2014s $12,270 for a decrease of
$1,230 in account payable account in 2014.
For other assets like land, its amount has dropped from $30,278 to $23,723 because of a
sale of land has been recorded during 2014 at an amount equal to its original amount, so we
deducted the proceeds from the sale of land, which was $6,555. A purchase of equipment
costing the company 27910 during 2014 has been recorded for Building and Equipment. Thus,
the account has increased from $222,665 to the current balance $250,575. For Accumulated
depreciation, buildings and equipment account, we deducted the $6,210 depreciation expenses
shown on the Cash flow statements for 2014, so the negative balance of $41,115 has enlarged
to $47,325 in 2014.
For other liabilities, long-term debt has increased from $31,500 to $40,400 due to an
issuance of long term debt for $8,900 in 2010.
For Stockholders equity, an issuance of common stock has caused changes in two
accounts in balance sheet at the end of 2014. For these 500 shares of common stock, each
share was worth $23,000/500=$46. Consequently, we increased common stock account by
$5,000 when the par value of the stock was $10, 10*500=$5,000. The remaining amount which
was 36*500=$8,000 was being put into Paid-in-capital account. With the purchasing of treasury
stock in an amount of $7,513 in 2014, we have a total from $27,568 being subtracted in the
balance sheet for 2014. Last but not least, the calculation of Retained earnings account is
adding up the retained earning account balance from the last financial period and Net income
in this financial period less the amount cash dividend in this period. As the cash dividend being
paid this year was $12,200 and Net Income in 2014 was $15,750, retained earnings this year
would be $146,872+$15,750-$12,200=$150,422.