Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A comparative balance sheet and income statement for 2017 are presented below for Antique Accents. Complete the statement of cash flows for the company using
A comparative balance sheet and income statement for 2017 are presented below for Antique Accents. Complete the statement of cash flows for the company using the indirect method. Please make sure your final answer(s) are accurate to 2 decimal places. Additional information regarding the statements: a. Bonds were issued and received $12,500 cash. b. $10,500 cash was received from the sale of a held to maturity investment. C. Equipment was purchased for $51,500 cash. d. Furniture was sold at cost for $30,000 cash. e. A held for trading investment was purchased for $11,500 cash. f. Held for Trading investments are made up of shares in companies listed in the NYSE, which are bought and sold for a profit. g. Issued 850 common shares for $10 per share. Antique Accents Cash Flow Statement For the year ended December 31, 2017 $488,000 Antique Accents Income Statement For the year ended December 31, 2017 Sales Operating expenses Cost of goods sold. 244,000 Depreciation expense 15,000 Interest expense 3,350 Amortization expense, trademark 8,500 Remaining expenses 103,400 Net income + 374,250 $113,750 Antique Accents Balance Sheet As of December 31 2017 2016 Cash $65,000 $57,000 Investments (held for trading) 59,000 47,500 Accounts receivable 76,000 82,500 Prepaid insurance 22,500 41,500 Inventory 69,500 74.000 HTM investments 29,000 39,500 Property, plant and equipment, net 77,500 71,000 Trademark 80,000 88,500 Total assets $478,500 $501,500 Accounts payable $11,500 $28,000 Accrued expenses payable 27,000 42,000 Short-term notes payable 110.000 121,000 Unearned revenue 29.500 38,000 Bonds payable 79,500 67,000 Dividends payable 16,000 58,500 Common shares 81,000 72,500 Retained earnings 124,000 74,500 Total liabilities and shareholders' equity $478,500 $501,500
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