Question
Balance Sheet Assets Cash Accounts Receivable $ 50,000 $ 72,000 70,000 Inventory Property and Equipment 80,000 60,000 110,000 65,000 60,000 Less: Accumulated Depreciation (30,000)
Balance Sheet Assets Cash Accounts Receivable $ 50,000 $ 72,000 70,000 Inventory Property and Equipment 80,000 60,000 110,000 65,000 60,000 Less: Accumulated Depreciation (30,000) (15,000) Total Assets $270,000 $252,000 Liabilities: Accounts Payable $10,000 $ 12,000 Salaries and Wages Payable 2,000 1,000 50,000 60,000 100,000 80,000 108,000 99,000 $ 252,000 Notes Payable, Long-Term Stockholders' Equity Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Cost of Goods Sold Depreciation Expense Other Expenses Net Income $270,000 $ 200,000 110,000 15,000 50,000 $ 25,000 Other Information from the company's records includes the following: Bought equipment for cash, $50,000. Paid $10,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $16,000 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income Tax Expense ($4,000) and Interest Expense ($3,000) were paid in full at the end of both years and are included in Other Expenses Required: a. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and
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