Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cash $156,000 $26,000 Accounts Receivable 52,000 48,000 Inventory and supplies 30,000 58,000 Investments 0 36,000 Machines 114,000 104,000 Accumulated depreciation-Machines (28,000) (20,000) Total Assets $324,000
Cash $156,000 $26,000 Accounts Receivable 52,000 48,000 Inventory and supplies 30,000 58,000 Investments 0 36,000 Machines 114,000 104,000 Accumulated depreciation-Machines (28,000) (20,000) Total Assets $324,000 $252,000 Liabilities & Stockholders' Equity Note payable $ 74,000 $ 54,000 Bonds payable (long-term) 74,000 94,000 Common Stock 80,000 44,000 Retained Earnings 96.000 60,000 Total Liabilities & Stockholders' $324,000 $252,000 Equity Income Statement & Additional information: 1. Net income for the current year ending December 31, 2020 is $58,000. 2. Sold investments for cash, cost $36,000 and resulting in $6,000 gain. 3. The only changes affecting retained earnings are net income and cash dividends paid. 4. All the following transactions are in cash: Purchased new machines; repay bonds payable; and issuance common stock. Required: Prepare the full statement of cash flows using indirect method for the year ended December 31, 2020
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