Question
Exercise 12-9 Here are comparative balance sheets for Blossom Company. Blossom Company Comparative Balance Sheets December 31 Assets 2019 2018 Cash $ 73,500 $ 32,900
Exercise 12-9
Here are comparative balance sheets for Blossom Company.
Blossom Company Comparative Balance Sheets December 31 | ||||||
Assets | 2019 | 2018 | ||||
Cash | $ 73,500 | $ 32,900 | ||||
Accounts receivable | 86,200 | 70,600 | ||||
Inventory | 169,600 | 187,200 | ||||
Land | 73,300 | 101,200 | ||||
Equipment | 259,600 | 200,700 | ||||
Accumulated depreciationequipment | (66,400 | ) | (33,900 | ) | ||
Total | $595,800 |
| $558,700 |
| ||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $ 35,300 | $ 46,600 | ||||
Bonds payable | 151,500 | 203,000 | ||||
Common stock ($1 par) | 217,200 | 174,700 | ||||
Retained earnings | 191,800 |
| 134,400 |
| ||
Total | $595,800 |
| $558,700 |
|
Additional information:
1. | Net income for 2019 was $101,500. | |
2. | Cash dividends of $44,100 were declared and paid. | |
3. | Bonds payable amounting to $51,500 were redeemed for cash $51,500. | |
4. | Common stock was issued for $42,500 cash. | |
5. | No equipment was sold during 2019, but land was sold at cost. |
Prepare a statement of cash flows for 2019 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