Question
Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 164,832 $ 98,736 Accounts receivable 179,112
Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 164,832 $ 98,736 Accounts receivable 179,112 77,520 Inventory 229,500 209,814 Prepaid expenses 57,936 53,040 Long-term investments 281,520 222,360 Plant assets 581,400 494,700 Accumulated depreciation (102,000 ) (106,080 ) Total $1,392,300 $1,050,090 Liabilities and Stockholders Equity Accounts payable $ 208,080 $ 137,292 Accrued expenses payable 33,660 42,840 Bonds payable 224,400 297,840 Common stock 448,800 357,000 Retained earnings 477,360 215,118 Total $1,392,300 $1,050,090 Shamrock, Inc. Income Statement Data For the Year Ended December 31, 2017 Sales revenue $792,458 Less: Cost of goods sold $276,338 Operating expenses, excluding depreciation 25,316 Depreciation expense 94,860 Income tax expense 55,651 Interest expense 9,649 Loss on disposal of plant assets 15,300 477,114 Net income $ 315,344 Additional information: 1. New plant assets costing $204,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $117,300 and accumulated depreciation of $98,940 were sold for $3,060 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $53,102 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. 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