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Dec. 31, 20Y8 Dec. 31, 20Y7 Assets Cash $53,020 $65,110 Accounts receivable (net) 81,470 87,770 Inventories 116,380 108,780 Prepaid expenses 4,740 3,300 Equipment 237,070 194,910
Dec. 31, 20Y8 | Dec. 31, 20Y7 | ||||
Assets | |||||
Cash | $53,020 | $65,110 | |||
Accounts receivable (net) | 81,470 | 87,770 | |||
Inventories | 116,380 | 108,780 | |||
Prepaid expenses | 4,740 | 3,300 | |||
Equipment | 237,070 | 194,910 | |||
Accumulated depreciation-equipment | (61,640) | (47,800) | |||
Total assets | $431,040 | $412,070 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $90,520 | $86,120 | |||
Mortgage note payable | 0 | 123,620 | |||
Common stock, $1 par | 14,000 | 9,000 | |||
Paid-in capital in excess of par-common stock | 211,000 | 116,000 | |||
Retained earnings | 115,520 | 77,330 | |||
Total liabilities and stockholders equity | $431,040 | $412,070 |
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
- Net income, $97,770.
- Depreciation reported on the income statement, $30,020.
- Equipment was purchased at a cost of $58,340 and fully depreciated equipment costing $16,180 was discarded, with no salvage realized.
- The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
- 5,000 shares of common stock were issued at $20 for cash.
- Cash dividends declared and paid, $59,580.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
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