Question
Following are selected balance sheet accounts of Sander Bros. Corp. at December 31, 2010 and 2009, and the increases or decreases in each account from
-
Following are selected balance sheet accounts of Sander Bros.
Corp. at December 31, 2010 and 2009, and the increases or decreases in each account from 2009 to 2010. Also presented is selected income statement information for the year ended December 31, 2010, and
additional information.
Selected balance sheet accounts
Assets
Accounts receivable Property, plant, and equipment Accumulated depreciation
$
2010
34,000 277,000
(178,000)
$
2009
24,000 247,000
(167,000)
Increase (Decrease)
$ 10,000 30,000
(11,000)
Liabilities and stockholders equity
Bonds payable Dividends payable Common stock, $1 par Additional paid-in capital Retained earnings
2010
$ 49,000 8,000 22,000 9,000 104,000
2009
$46,000 5,000 19,000 3,000 91,000
Increase
$ 3,000 3,000 3,000 6,000 13,000
Selected income statement information for the year ended December 31, 2010
Sales revenue Depreciation Gain on sale of equipment Net income
Additional information:
$155,000 38,000 14,500 31,000
-
During 2010, equipment costing $45,000 was sold for cash.
-
Accounts receivable relate to sales of merchandise.
-
During 2010, $25,000 of bonds payable were issued in exchange for property, plant, and equip-
ment. There was no amortization of bond discount or premium.
Instructions
Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.
-
Payments for purchase of property, plant, and equipment.
-
Proceeds from the sale of equipment.
-
Cash dividends paid.
-
Redemption of bonds payable
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