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2. (25 Points) Comparative balance sheet statements of Irving Inc. are presented below: Irving Inc. COMPARATIVE BALANCE SHEET ACCOUNTS December 31, 2017 and 2016 December
2. (25 Points) Comparative balance sheet statements of Irving Inc. are presented below: Irving Inc. COMPARATIVE BALANCE SHEET ACCOUNTS December 31, 2017 and 2016 December 31 2016 2017 S 25.000 45,500 Assets (1,500) Cash Accounts Receivable Less: Allowance for Doubtful Accounts Inventory Dividend Receivable Investments 55,000 3,000 13,000 70,000 231,000 $ 20,000 48,000 (1,000) 50.000 2,000 10,000 40,000 250,000 (50.000) $369.000 (35,000) Land $406,000 Buildings & Equip. Less:Accumulated depreciation Totals 20.000 5.000 2.000 8,000 Liabilities Accounts Payable Salaries Payables Interest payable Income tax payable Note payable Bonds Payable Less: Discount on bonds 13,000 2.000 4.000 7.000 20,000 98,000 (2.000) 70,000 (3.000) 200,000 20,000 47,000 Shareholders' Equity Common Stock Paid-in-capital-excess of par Retained earnings Less: Treasury stock (at cost) Total 210,000 25,000 39,000 (10.000) $406.000 $369,000 Additional data (all transactions occurred in 2017 unless otherwise specified): 1. There were no write-offs of uncollectible accounts in 2017. 2. A building that originally cost $30.000 with accumulated depreciation balance of $20,000 was sold for $4,000. 3. The common stock of Joys Corporation was purchased for $3.000 as a long-term investment. 4. Land was acquired by paying $10,000 cash and issuing a 13%, seven-year. $20.000 note payable to the seller TAME 2 Present Value of 51 pv (1+r O 1.9 2.0% 2.5% 3.0 3.5% 40% 45% 5.0 5.0 6.0 7. 10 008522 .00099 097567 0.77 0.96618 0.96154 095094 0.95238 0.9677 0.94340 0.93458 SO 0.97006, 0.96317 095181 0.94260 093351092456 1573 OYOYOB VS GOD 7346 08674 04232 09860 0.91514 0.90194 0. 00 0-8760 . 4 0.85161 089062 0.8163007 90595 O S 0.87144 0.25480 089856 0.2270 O BOT22 0.79209 0.76290 0.71503 261 0.84197 0.82193 O 80245 0.78353 0.76513 0.74725 0.71290 - 0.746.22 0.72525 0.70496 0.666:34 - 249 16770 5. New equipment was purchased for $11.000 cash. 6. On January 1, $28,000 of bonds was sold at face value. 7. On January 19, Irving issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $15 per share at that time. 8. Cash dividends of $15,000 were paid to shareholders. 9. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $10,000. Irving uses the cost method to account for treasury stock. Irving's 2017 income statement follows (ignore taxes): Revenues Sales Dividend revenue $200,000 3.000 $203,000 Expenses Cost of goods sold Operating expenses Depreciation expense Interest expense Loss on sale of building Income tax expense 120,000 26,000 5,000 8,000 6,000 16.000 181,000 Net income $ 22.000 Required: Prepare a statement of cash flows for the year ended 2017 using the indirect method
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