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I am having trouble with doing cash flow statements Damocles Company manufacture fine swords. Below arelisted the net changes in the company's balance sheetaccounts for
I am having trouble with doing cash flow statements
Damocles Company manufacture fine swords. Below arelisted the net changes in the company's balance sheetaccounts for the past year:
Debits | Credits | |
Cash | $51,000 | |
Accounts Receivable | 170,000 | |
Inventory | $63,000 | |
Prepaid Expenses | 4,000 | |
Long-Term Loans to Subsidiaries | 80,000 | |
Long-Term Invesments | 90,000 | |
Plant and Equipment | 340,000 | |
Accumulated Depreciation | 65,000 | |
Accounts Payable | 48,000 | |
Accrued Liablilites | 5,000 | |
Bonds Payable | 200,000 | |
Deferred Income Taxes | 9,000 | |
Preferred Stock | 180,000 | |
Common Stock | 300,000 | |
Retained Earnings | 75,000 | |
840,000 | 840,000 |
The following addtional information is available about lastyear's activities:
a. Net income for the year was $85,000
b. The company sold equipment during the year for$35,000. The equipment originally cost the company $160,000,and it had $145,000 in accumulated depreciation at the time ofsale.
c. The company declared and paid $10,000 in cash dividendsduring the year.
d. Depreciation charges for the year were $_?_
e. The opening and closing balances in the Plant and Equipmentand Accumulated Depreciation accounts are given below:
Opening | Closing | |
Plant and Equipment | $2,850,000 | $3,190,000 |
Accumulated Depreciation | $975,000 | $1,040,000 |
f. There were no stock conversions (i.e., one class of stockconverted to another class) during the year.
g. The balance in the Cash account at the beginning of theyear was $190,000; the balance at the end of the year was$_?_
h If data are not given explaining the change in an account,make the most reasonable assumption as to the cause of thechange.
Required: Using the indirect method, prepare a statement ofcash flows for the year.
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