Question
26) The following is a comparative balance sheet of Cowboy Company for 2020 and 2021. 2021 2020 Cash $ 250,000 $ 220,000 Accounts Receivable 327,600
26) The following is a comparative balance sheet of Cowboy Company for 2020 and 2021.
2021 2020
Cash $ 250,000 $ 220,000
Accounts Receivable 327,600 356,000
Inventory 822,000 780,000
Available-for-Sales Security 0 200,000
Equipment 2,400,000 2,040,000
Accumulated Depreciation (700,000) (760,000)
3,099,600 2,836,000
Accounts Payable 359,000 281,000
Bonds Payable, due 2025 0 400,000
Common Stock, $20 par 1,800,000 1,600,000
Additional Paid-in Capital 280,000 200,000
Retained Earnings 660,600 355,000
3,099,600 2,836,000
Additional information:
1) Net income: $545,600 for 2021 and $555,000 for 2020.
2) Depreciation reported on the 2021 income statement: $140,000.
3) Fully depreciated equipment ($200,000), no residual value, was scrapped for nothing (thrown away). Equipment was purchased for $560,000.
4) Bonds of $400,000 were retired at their face value.
5) 10,000 shares of common stock were issued for cash at $28 per share.
6) Cash dividend declared and paid, $240,000
7) Available-for-sale securities with a book value of $200,000 were sold for $300,000.
Prepare a statement of cash flows (operating, investing and financing activities) for Cowboy for 2021, using the indirect method.
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