Question
Prepare the statement of cash flows for Webster Company for the year ended December 31, 2015. Use the indirect method. Webster Company Balance Sheet At
- Prepare the statement of cash flows for Webster Company for the year ended December 31, 2015. Use the indirect method.
Webster Company
Balance Sheet
At December 31
Assets | 2015 | 2014 |
Cash | $24,640 | $23,040 |
Accounts Receivable | 32,180 | 28,900 |
Inventory | 73,125 | 61,710 |
Long-term Investments | 55,900 | 56,900 |
Equipment | 175,500 | 145,500 |
Accumulated Depreciation | (33,550) | (31,200) |
Total Assets | $327,795 | $284,850 |
|
|
|
Liabilities |
|
|
Accounts Payable | $65,000 | $40,380 |
Income Tax Payable | 10,725 | 10,200 |
Bonds Payable | 48,750 | 66,000 |
Total Liabilities | $124,475 | $116,580 |
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|
|
Equity |
|
|
Common Stock | $117,000 | $96,000 |
Paid in Capital in Excess of Par | 13,000 | 9,000 |
Retained Earnings | 73,320 | 63,270 |
Total Equity | $203,320 | $168,270 |
Total Liabilities & Equity | $327,795 | $284,850 |
Webster Company
Income Statement
For the Year Ended, December 31, 2015
Sales |
| $240,000 |
Cost of Goods Sold | $80,900 |
|
Depreciation Expense | 29,400 |
|
Other Operating Expenses | 48,000 |
|
Interest Expenses | 2,000 | (160,300) |
Other Gains(Losses) |
|
|
Loss on Sale of Equipment |
| (8,400) |
Income before Taxes |
| 71,300 |
Income tax Expense |
| 27,650 |
Net Income |
| $43,650 |
Additional Information:
- There was no gain or loss on the sales of the long-term investments or on retirement of Bonds
- Old Equipment with an original cost of $37,550 and accumulated depreciation of $27,050 was sold for cash.
- New Equipment was purchased for cash.
- Cash dividends were declared and paid during the year.
- Additional shares of stock were issued for cash
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