Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

atement of Cash Flows Vernet Company Comparative Balance Sheets December 31 2014 s 41,460 57,000 2013 Assets Cash Accounts receivable Inventory Prepaid expenses 77,000 64,000

image text in transcribed
atement of Cash Flows Vernet Company Comparative Balance Sheets December 31 2014 s 41,460 57,000 2013 Assets Cash Accounts receivable Inventory Prepaid expenses 77,000 64,000 170,000 140,000 16,540 150,000 250,000 12,140 140,000 Buildings Accumulated depreciation-buildings Equipment 0,000 250.00 (70,000) 50.000) 215,000 175,000 -42,000 $760,540 (70,000) Accumulated depreciation-equipment $765,600 Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings s 58,000 45,000 265,000 275,000 250,000 200,540 $765,600 $760,540 265,000 167,600 Total Additional information: 1. Operating expenses include depreciation expense $57,000 and charges from expenses of $4,400. 2. Land was sold for cash at cost for $35,000 3. Cash dividends of $82,940 were paid. 4. Net income for 2014 was $50,000. 5. Equipment was purchased for $80,000 cash. In addition, equipment costing with a book value of $31,000 was sold for $37,000 cash. 6. Issued 25,000 shares of $1 par value common stock in exchange for landv value of $25,000. Instructions Prepare a statement of cash flows for 2014 using the indirect method

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

Step: 3

blur-text-image

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

Transfer Pricing Audits In China

Authors: J. Li, A. Paisey

2007th Edition

0230001963, 978-0230001961

More Books

Students also viewed these Accounting questions

Question

Explain the various techniques of Management Development.

Answered: 1 week ago