Question
Hi I need help with this question: Scheeler Company has the following comparative balance sheet data available: 12/31/2015 12/31/2014 Cash $30,000 $80,000 Accounts Receivable, net
Hi I need help with this question:
Scheeler Company has the following comparative balance sheet data available:
12/31/2015 | 12/31/2014 | |
Cash | $30,000 | $80,000 |
Accounts Receivable, net | 160,000 | 100,000 |
Inventory | 100,000 | 70,000 |
Prepaid Rent | 20,000 | 10,000 |
Total Current Assets | $310,000 | $260,000 |
Equipment | $400,000 | $200,000 |
Accumulated Depreciation | (60,000) | (50,000) |
Total Assets | $650,000 | $410,000 |
Accounts Payable | $50,000 | $40,000 |
Salaries Payable | 40,000 | 40,000 |
Bonds Payable | 0 | 50,000 |
Common Stock, $10 par | 300,000 | 100,000 |
Additional Paid-in Capital | 50,000 | 0 |
Retained Earnings | 210,000 | 180,000 |
Total Liabilities & Stockholders Equity | $650,000 | $410,000 |
Additional information:
1> The company reports net income of $100,000 and Depreciation Expense of $20,000 for the year ending December 31, 2015.
2> Dividends declared and paid in 2015, $70,000.
3> Equipment with a cost of $20,000, with Accumulated Depreciation of $10,000 was sold for $3,000.
4> New equipment was purchased for cash.
Using the indirect method, prepare the statement of cash flows for the year ending December 31, 2015.
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