Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 1: The following financial information is obtained regarding Stallion Company: 12/231/19 12/31/18 Current Assets: Cash 190,000 46,000 Accounts Receivable (net) 140,000 90.000 Merchandise Inventory

image text in transcribed
image text in transcribed
Problem 1: The following financial information is obtained regarding Stallion Company: 12/231/19 12/31/18 Current Assets: Cash 190,000 46,000 Accounts Receivable (net) 140,000 90.000 Merchandise Inventory 120,000 150,000 Prepaid Expenses 7,000 2.000 Supplies 3,000 4,000 Non-Current Assets: Land 100,000 Plant Assets 200,000 200,000 Accumulated Depreciation (60,000) (40,000) 200.000 Total Assets 452.000 Current Liabilities: Accounts Payable 33,000 Accrued Liabilities 9,000 25,000 15,000 100.000 140.000 Non-current Liabilities: Notes Payable 20.000 Total Liabilities: 62.000 Common Stock (S1 Par Value) 140,000 Common Stock-APIC 10,000 Retained Earnings 240.000 Total Stockholders' Equity 390.000 200.000 50,000 310.000 560.000 Additional Data: A) 2019 Net Income was $170,000 B) Land was acquired by taking out a Notes Payable for $90,000 and paying Cash for the balance. C) All Common Stock was issued for Cash. REQUIRED: Prepare the Statement of Cash Flow for Stallion Company under the Indirect Method. HINT: Don't be afraid to be an Accounting Detective and draw T-accounts on scrap paper. That will help you with Notes Payable as well as with Depreciation Expense and Dividends which are not given here but can be easily calculated if you are a good Accounting Detective

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions