Question: Refer to the data in QS 16-
Refer to the data in QS 16-11.
Furniture costing $55,000 is sold at its book value in 2015. Acquisitions of furniture total $45,000 cash, on which no depreciation is necessary because it is acquired at year-end. What is the cash inflow related to the sale of furniture?
Data from QS 16-11:
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CRUZ, INC. Comparative Balance Sheets December 31, 2015 2015 2014 Assets Cash .... $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 85,800 Inventory . Prepaid expenses 95,800 5,400 4,200 Total current assets. 227,000 175,000 Furniture .... 109,000 119,000 Accum. depreciation-Furniture (17,000) $319,000 (9,000) Total assets $285,000 Liabilities and Equity $ 15,000 $ 21,000 Accounts payable Wages payable.... Income taxes payable Total current liabilities. 9,000 5,000 1,400 2,600 25,400 28,600 Notes payable (long-term) 29,000 69,000 Total liabilities 54,400 97,600 Equity Common stock, $5 par value Retained earnings ... Total liabilities and equity 229,000 179,000 35,600 8,400 $319,000 $285,000 CRUZ, INC. Income Statement For Year Ended December 31, 2015 Sales ..... Cost of goods sold Gross profit .... $488,000 314,000 174,000 Operating expenses depreciation expense Other expenses $37,600 89,100 126,700 Income before taxes 47,300 Income taxes expense 17,300 Net income $ 30,000
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