Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Erie Company reported the following comparative balance sheets: 2019 2018 Assets: Cash $33,200 $12,750 53,000 44,800 Accounts receivable Inventory 29,500 27,500 Prepaid rent 2,200 6,200

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Erie Company reported the following comparative balance sheets: 2019 2018 Assets: Cash $33,200 $12,750 53,000 44,800 Accounts receivable Inventory 29,500 27,500 Prepaid rent 2,200 6,200 17,600 31,800 Investments (long-term) Property, plant, and equipment Accumulated depreciation 162,000 149,450 (61,600) (56,200) Total assets $235,900 $216,300 Liabilities and Equity: Accounts payable $16,900 $19,500 Interest payable 4,800 3,500 9,600 7,100 Wages payable Income taxes payable Notes payable 5,500 3,600 25,000 53,000 Common stock 100,000 Retained earnings 68,500 59,800 75,400 ess=falso Update C Common stock 100,000 68,500 Retained earnings 75,400 59,800 Total llabilities and equity $235,900 $216,300 Additional Information: 1. Net Income for 2019 was $21,900 2. Cash dividends of $6,300 were declared and paid during 2019. 3. Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additional tong-term investments were purchased for $14,400 cash 4. Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for $3,000 can. Now equipment was purchased for $27,350 cash 5. Depreciation expense was $18,900 6. A principal payment or $28,000 was made on long-term notes 7. Common stock was sold for $31.500 cash. Required: Prepare a statement of cash flows for Erie, using the indirect method to compute net cash flow from operating activities. Use a minus sign to Indicate any decreases in cash or cash outflows. If an answer is zero, entero. Erie Company Statement of Cash Flows For the year ended December 31, 2019 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities erwind

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

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

1118334329, 978-1118334324

More Books

Students also viewed these Accounting questions

Question

What types of errors can Exits

Answered: 1 week ago