Question
Bonita Industries Comparative Balance Sheets Dec. 31 Assets 2017 2016 Cash $40,600 $23,200 AccountsReceivable 23,200 16,240 Inventory 32,480 23,200 Property, Plant, and equipment 69,600 90,480
Bonita Industries Comparative Balance Sheets Dec. 31 | ||
Assets | 2017 | 2016 |
Cash | $40,600 | $23,200 |
AccountsReceivable | 23,200 | 16,240 |
Inventory | 32,480 | 23,200 |
Property, Plant, and equipment | 69,600 | 90,480 |
Accumulated Depreciation | (37,120) | (27,840) |
Total | $128,760 | $125,280 |
Liabilities and Stockholder's Equity | ||
Accounts Payable | $22,040 | $17,400 |
Income Taxes Payable | 8,120 | 9,280 |
Bonds Payable | 19,720 | 38,280 |
Common Stock | 20,880 | 16,240 |
Retained Earnings | 58,000 | 44,080 |
Total | $128,760 | $125,280 |
Bonita Industries Income Statement For the Year Ended Dec. 31, 2017 | ||
Sales Revenue | $280,720 | |
Cost of Goods Sold | 203,000 | |
Gross Profit | 77,720 | |
Selling Expenses | $20,880 | |
Administrative Expenses | 6,960 | 27,840 |
Income From Operations | 49,880 | |
Interest Expense | 3,480 | |
Income Before Income Taxes | 46,400 | |
Income tax Expense | 9,280 | |
Net income | $37,120 |
1. Depreciation expense was $20,300
2. Dividends declared and paid were $23,200
3. During the year equipment was sold for $9,860 cash. This equipment cost $20,880 originally and had accumulated depreciation of $11,020 at the time of sale.
Prepare a statement of cash flows using the indirect method.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started