Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Canyon Cance Company's comparative balance sheet and additional data are shown below. (Click the icon to view the comparative balance sheet) (Click the icon to

image text in transcribedimage text in transcribedimage text in transcribed

Canyon Cance Company's comparative balance sheet and additional data are shown below. (Click the icon to view the comparative balance sheet) (Click the icon to view the additional data.) Requirement Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not used in the statement, leave the box emply: do not select a label or enter a zero.) Statement of Cash Flows Data table Year Ended December 31, 2025 , Cash Flows From Operating Activities: Canyon Cance Company Net Income Comparative Balance Sheet Adjustments to Reconcile Net Income to Net Cash December 31, 2025 and 2024 Provided by (Used for) Operating Activities: 2025 2024 Assets Current Assets $ 523,693 S 12,125 0 O 23,840 2.422 7,600 355 0 60 165 Cash Short-term Investments, net , Accounts Receivable, net Merchandise Inventory Office Supplies Prepald Rent Property, Plant, and Equipment: , Land Building Canoes Office Furniture and Equipment 0 2,000 155,000 85,000 35.000 610,000 12.000 12,000 150,000 (35,180) 0 0 (850) Accumulated DepreciationPP&E - X Data table More info $ 1,442,190 $ 153,040 Total Assets Liabilities $ 5,195 $ 3,050 295 745 700 325 Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Interest Payable Unearned Revenue 1. The income statement for 2025 included the following items: a. Net income, $417,000 b. Depreciation expense for the year, $34,330. c. Amortization on the bonds payable, $254. 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $210,000, receiving cash of $208,476. 4. The company distributed 4,000 shares of common stock in a stock dividend when the market value was $4.50 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2025 is considered a financing activity because it does not relate to operations. 4,250 1,250 15,000 0 0 350 50 500 350 Long-Term Liabilities: 7,200 Notes Payable Mortgage Payable Bonds Payable 0 7,200 405,000 210,000 (1,270) 0 Print Done 0 Discount on Bonds Payable Total Liabilities 647,670 12,520 Stockholders' Equity Paid-In Capital: Data table 15,000 0 350 50 500 350 Notes Payable Interest Payable Unearned Revenue Long-Term Liabilities: Notes Payable Mortgage Payable Bonds Payable Discount on Bonds Payable 7,200 7,200 405,000 0 0 210,000 (1,270) 0 Total Liabilities 647,670 12,520 Stockholders' Equity Paid-In Capital: Preferred Stock 60,000 0 10,000 0 186,000 136,000 Paid-In Capital in Excess of ParPreferred Common Stock Paid-In Capital in Excess of ParCommon Retained Earnings Total Stockholders' Equity 150,000 0 388,520 4,520 794,520 140,520 $ 1,442,190 $ 153,040 Total Liabilities and Stockholders' Equity

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

Applying IFRS Standards

Authors: Ruth Picker, Kerry Clark, John Dunn, David Kolitz, Gilad Livne, Jance Loftus, Leo Van Der Tas

4th Edition

1119159229, 9781119159223

More Books

Students also viewed these Accounting questions