Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Ally Corp. has net income of $30,000 and dividends declared and paid of $12,000 in 2021. Net income included depreciation expense of $13,000, as well

Ally Corp. has net income of $30,000 and dividends declared and paid of $12,000 in 2021. Net income included depreciation expense of $13,000, as well as a gain of $8,000 recorded when fully depreciated equipment (cost and accumulated depreciation of $20,000) was sold. Cash was used to repay long term debt in 2021. Ally reports the following balance sheets: 2021 2020 Cash $10,000 $12,000 Accounts receivable 8,000 11,000 Equipment 60,000 80,000 less accumulated depreciation (23,000) (30,000) Total assets $55,000 $73,000 Accounts payable $14,000 $6,000 Income taxes payable 2,000 6,000 Long term debt 10,000 50,000 Common stock 6,000 6,000 Retained earnings 23,000 5,000 Total liabilities and equity $55,000 $73,000 Prepare Ally's 2021 statement of cash flows in good form under generally accepted accounting principles.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Changing Face Of American BankingDeregulation, Reregulation, And The Global Financial System

Authors: Ranajoy Ray Chaudhuri

3rd Edition

1137365811, 9781137365811

More Books

Students explore these related Accounting questions