MANAGERIAL ACCOUNTING HANDOUT PROBLEM 14 Score Name Section Problem (10 points). Attached is the comparative balance sheet information for Bongo Corporation for 20X0 and 20X1 In addition to this information, an examination of the company's other financial statements and accounting records provided the following BONGO CORPORATION ADDITIONAL INFORMATION FOR PREPARING STATEMENT OF CASH FLOWS FOR YEAR ENDING DECEMBER 31, 20XI ()The only transactions affecting Retained Eamings during 20X0 were cash dividends declared for the year and net income for the year. Cash dividends totaling $10,800 were declared and paid during the year. (2) Store cquipment that cost $4,500 was purchased for cash during the year. (3) Fully depreciated store equipment that cost $1440 was discarded and its cost and accumulated depreciation were removed from the accounts. (4) Office equipment that cost $900 and had been depreciated $540 was traded in on new office equipment priced at $1,260. The gain or loss is to be recognized for financial reporting purposes (5) During the year, the company purchased the land and building it occupied and had previously rented, paying S72.000 in cash and giving a twenty year note payable for the balance. No payments were made on notes payable during the year. (6) Three thousand six hundred shares of common stock were issued during the year for cash. (7) There were no other gains or losses on the income statement other than those that resulted |from the transactions discussed above. REQUIRED: Prepare, in proper format, a statement of cash flows, using the indirect method, for the year ended December 31, 20X1. Also, if appropriate, prepare a schedule of noncash investing and financing activities. BONGO CORPORATION COMPARATIVE BALANCE SHEETS FOR YEARS ENDING DECEMBER 31, 20X1 AND 20X0 12/31/X1 12/31/X0 DEBITS 28.980 S Cash 40,140 Accounts Receivable, Net 29,160 28,080 Merchandise Inventory 90,360 92.520 Prepaid Expenses 2,340 1,980 Store Equipment 46,800 43,740 Office Equipment 7,920 7,560 Land 36,000 0 Building 180,000 TOTAL DEBITS 214,020 S 421.560 S CREDITS Accumulated Depreciation, Store Equipment 9.360 S S 6,480 Accumulated Depreciation, Office Equipment 2.520 2.340 Accumulated Depreciation, Building 2,160 0 Accounts Payable 31,140 33,660 Taxes Payable 7,920 7,380 0 Long Term Note Payable 144,000 Common Stock, $10 par value 180,000 144,000 Paid In Capital in Excess of Par, Common Stock 7,200 Retained Eamings 20,160 37,260 TOTAL CREDITS 421,560 S 214,020