Balance sheet information for a resort hotel reflects the changes to current accounts that occurred over the annual operating period ended December 31, 2005. Cash account balance at December 31, 2004, was

$14,000 and the ending cash balance at December 31, 2005, is $27,600.

Additional information applying to the current year ending December 31, 2005:

a. Net income for the year 2005 was $113,400.

b. Depreciation expense for the year 2005 was $121,500.

c. Furnishings with a book value of $1,400 were sold for $5,400.

d. Equipment with a book value of $2,200 was sold for $1,800.

e. New furnishings were purchased for $14,800.

f. New equipment was purchased for $22,200.
g. A total of $55,600 was paid to reduce long-term debt.
h. Cash dividends of $128,300 were declared and paid.
Using the information provided, complete an SCF, in good form using the indirect method.

Transcribed Image Text:

Current Asset Accounts Change Amount Cash Increased $13,600 Credit card receivables Increased 1,680 Accounts receivable Increased 1,120 Inventories Increased 800 Prepaid expenses Decreased 500