Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. The comparative balance sheets for Vaden Corporation show the following information: 2021 2020 Cash $35,900 $10,200 Accounts receivable, net 43,300 20,300 Inventory 40,000
1. The comparative balance sheets for Vaden Corporation show the following information: 2021 2020 Cash $35,900 $10,200 Accounts receivable, net 43,300 20,300 Inventory 40,000 42,000 Investments 0 15,000 Building 160,000 100,000 Accumulated depreciation - building (27,700) (20,000) Equipment 61,500 50,000 Accumulated depreciation - equipment (10,000) (17,500) Patent 8,500 10,500 Total $311,500 $210,500 Accounts payable $17,000 $26,500 Salaries payable 21,000 17,000 Long-term notes payable 100,000 50,000 Common stock 110,000 90,000 Retained earnings 63,500 27,000 Total $311,500 $210,500 1. 2. Additional data related to 2021 are as follows: $10,000 of the long-term note payable was paid by cash. Equipment that had cost $15,000 and had accumulated depreciation of 9,500 at time of disposal was sold for $4,000 in cash. 3. 4. Common stock was issued in exchange for $20,000 cash. Cash dividends of $19,500 were paid. 5. Investments (available-for-sale) were sold for $28,000. 6. Cash of $26,500 was paid for the acquisition of equipment. 7. 8. 9. A long-term note for $60,000 was issued for the acquisition of a building. Depreciation expense for the year was $9,700 and amortization expense was $2,000. Net Income for the year is $56,000. Required: Prepare a statement of cash flows, using the indirect method, in good form including all required disclosures.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started