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Additional Information: 1. Equipment with an original cost of $90,000 and accumulated depreciation of $60,000 was sold for cash. 2. Depreciation, amortization, and bad debt
Additional Information: 1. Equipment with an original cost of $90,000 and accumulated depreciation of $60,000 was sold for cash. 2. Depreciation, amortization, and bad debt expense are included in operating expenses. 3. Boyd accounts for their investment in XYZ using the equity method. XYZ Company paid no cash dividends during 2017. 4. Boyd declared and paid cash dividends during the year. Check Figure: Cash from Operating Activities $139,100
NOTES Providing (well labeled & well organized) computations, schedules, etc. will maximize partial credit for incorrect answers e Solution is posted in the course space 24 hours after problem due date problems will not be accepted for credit once the solution is posted. Prepare a 2017 Statement of Cash Flows for the Boyd Company in good form, including required supplemental disclosures. The operating activities section may be prepared using either the direct or the indirect method (both result in the same Cash Flow from Operations amounts. Boyd Company Income Statement For the year ended 12/31/17 $1,200,000 690,000) 510,000 Sales Cost of Goods Sold Gross Margin Operating Expenses Income from Operations Other Revenue&Expense: Investment Revenue Gain on sale of equipment Interest Expense S 135,000 25,000 8,000 7,000 $ 161,000 Income before Tax Income Tax Expense Net Income 56,000) S 105,000 Boyd Company Balance Sheet- As of 12/31/17 and 12/31/16 2017 2016 ASSETS Cash Accounts Receivable Allow for Dbtful Accts Inventory Prepaid Rent Equity Investments Equipment Accumulated Depreciation 100,000 S 52,400 40,000 $58,500 1.900) $45,700 1,000 56,600 87,000 14,000 310,000 44,700 63,000 16,000 285,000 $380,000 $266,300 280,000 $800,000 75,000) 191.300 Total Assets $640,00 LIABILITIES& OWNERS' EQUITY Accounts Payable Interest Payable Bonds Payable Discount on Bonds Payable 27,000 Deferred Tax Liability Common Stock Paid in Capital in Excess of Par Retained Earnings 59,000 30,000 S 48,000 43,000 $400,000 $400,000 373,000 90,000 50,000 80,000 30,000 370,000 75,000 10,000 40,000 54,000 Total Liabilities & Owners' Equity $800,000 $640,00 See Additional Information on next pageStep by Step Solution
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