Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, please solve this question correctly. And use the particulars given in image. Please just solve it. Windsor, Inc. reported the following information for 2017.

Hi, please solve this question correctly. And use the particulars given in image. Please just solve it.

Windsor, Inc. reported the following information for 2017.

Windsor, Inc. Comparative Balance Sheets December 31

Assets 2017 2016

Change Increase/Decrease

Cash

$71,520 $36,090 $35,430 Increase

Accounts receivable

61,620 21,880 39,740 Increase

Inventory

43,590 0 43,590 Increase

Prepaid expenses

6,000 3,970 2,030 Increase

Land

55,410 69,500 14,090 Decrease

Buildings

198,460 198,460 0

Accumulated depreciationbuildings

(21,195 ) (14,130 ) 7,065 Increase

Equipment

181,930 68,220 113,710 Increase

Accumulated depreciationequipment

(27,795 ) (10,000 ) 17,795 Increase

Totals

$569,540 $373,990
Liabilities and Stockholders Equity

Accounts payable

$42,720 $40,400 $2,320 Increase

Accrued expenses payable

0 9,960 9,960 Decrease

Bonds payable

100,600 150,970 50,370 Decrease

Common stock ($1 par)

228,430 60,050 168,380 Increase

Retained earnings

197,790 112,610 85,180 Increase

Totals

$569,540 $373,990

Windsor, Inc. Income Statement For the Year Ended December 31, 2017

Sales revenue

$950,360

Cost of goods sold

$470,390

Operating expenses

229,730

Interest expense

12,120

Loss on disposal of equipment

1,980 714,220

Income before income taxes

236,140

Income tax expense

65,240

Net income

$170,900

Additional information:
1. Operating expenses include depreciation expense of $39,880.
2. Land was sold at its book value for cash.
3. Cash dividends of $85,720 were declared and paid in 2017.
4. Equipment with a cost of $165,070 was purchased for cash. Equipment with a cost of $51,360 and a book value of $36,340 was sold for $34,360 cash.
5. Bonds of $50,370 were redeemed at their face value for cash.
6. Common stock ($1 par) of $168,380 was issued for cash.

Use this information to prepare a statement of cash flows 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).)

image text in transcribed

image text in transcribed

image text in transcribed

Windsor, Inc. Statement of Cash Flows-Indirect Method Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Depreciation Expense Loss on Disposal of Equipment Increase in Accounts Receivable Increase in Inventory Decrease in Prepaid Expenses Decrease in Accounts Payable Net Cash Provided by Operating Activities Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Land Purchase of Equipment Sale of Equipment Net Cash used by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Sale of Common Stock Payment of Dividends Net Cash used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Accrued Expenses Payable Decrease in Inventory Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Equipment Increase in Accounts Payable Increase in Accounts Receivable Increase in Accrued Expenses Payable Increase in Inventory Increase in Prepaid Expenses Loss on Disposal of Equipment Net Income Payment of Dividends Purchase of Equipment Redemption of Bonds Sale of Common Stock Sale of Equipment Sale of Land

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

Statistical Audit Automation Applying Computer Assisted Audit Techniques

Authors: Edward J. Winslow

1st Edition

1973281015, 978-1973281016

More Books

Students also viewed these Accounting questions