Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over the annual operating period ended December 31, 0008. Cash account balance at December 31, 0007, was

$12,020 and the ending cash balance at December 31, 0008, is $30,840.

Additional information applying to the current year ending December 31, 0008:

a. Net income for Year 0008 was $112,400.

b. Depreciation expense for Year 2008 was $120,000.

c. Furnishings with a book value of $5,400 were sold for $8,600.

d. Equipment with a book value of $2,800 was sold for $2,000.

e. New furnishings were purchased for $16,800.

f. New equipment was purchased for $24,200.
g. A total of $54,800 was paid to reduce long-term debt.
h. Cash dividends of $122,400 were declared and paid.
Using the information provided, complete an SCF, in good form, using the indirect method.LO1

Transcribed Image Text:

Current Asset Accounts Change Amount Cash Increased $18,820 Credit card receivables Increased 680 Accounts receivable Increased 1,500 Inventories Increased 1,200 Prepaid expenses Decreased 800 Current Liability Accounts Change Amount Accounts payable Decreased $ 2,100 Accrued payroll payable Increased Taxes payable Decreased 2,400 900