Question
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).)
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