Question
ARCO Chemical Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows.
ARCO Chemical Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative condensed balance sheets are summarized below:
Additional data for the current year:
Bought equipment for cash, $40,200. Sold equipment for $6,000 that had and original cost of $15,000 and accumulated depreciation of $10,500.
Paid $31,200 on the long-term notes payable and borrowed $24,000 on the long-term notes payable.
Issued new shares of common stock for $31,000 cash and repurchased treasury shares of common stock for $11,800.
A dividend was declared and paid in the current year.
Included in operating expenses was depreciation expense of $16,500. Non-operating income (expense) includes the gain or loss on the sale of the equipment calculated in a above, with the remaining balance being other miscellaneous income/ expenses, including interest expense.
Required: Using the template below, prepare the statement of cash flows (Operating, Investing and Financing sections only) for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) Show all work on the following page.
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