Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bramble Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. December 31 2025 2024
Bramble Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. December 31 2025 2024 Cash $38,800 $12,800 Accounts receivable 12,200 9,900 Inventory 11,900 10,000 Equity investments -0- 3,000 Buildings -0- 30,000 Equipment 39,900 19,900 Copyrights 5,000 5,300 Totals $107,800 $90,900 Allowance for doubtful accounts $3,000 $4,400 Accumulated depreciation-equipment 1,900 4,500 Accumulated depreciation-buildings -0- 5,900 Accounts payable 5,000 3,900 Dividends payable -0- 5,000 Notes payable, short-term (nontrade) 2,900 4,100 Long-term notes payable 36,000 25,000 Common stock 38,000 33,000 Retained earnings 21,000 5,100 $107,800 $90,900 Additional data related to 2025 are as follows. 1. Equipment that had cost $11,100 and was 30% depreciated at time of disposal was sold for $2,500. 2. $5,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2025, the building was completely destroyed by a flood. Insurance proceeds on the building were $32,700 (net of $4,000 taxes). 5. Equity investments (ownership is less than 20% of total shares) were sold at $1,400 above their cost. No unrealized gains or losses were recorded in 2025. 6. Cash of $15,100 and a long-term note for $16,000 were given for the acquisition of equipment. 7. Interest of $2,000 and income taxes of $5,000 were paid in cash. (a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Bramble. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started