Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 12-09A Condensed financial data of Blue Spruce Corp. follow. Blue Spruce Corp. Comparative Balance Sheets December 31 Assets 2022 Cash $ 185,840 Accounts receivable

image text in transcribedimage text in transcribed

Problem 12-09A Condensed financial data of Blue Spruce Corp. follow. Blue Spruce Corp. Comparative Balance Sheets December 31 Assets 2022 Cash $ 185,840 Accounts receivable 201,940 Inventory 258,750 Prepaid expenses 65,320 Long-term investments 317,400 Plant assets 655,500 Accumulated depreciation (115,000 ) Total $1,569,750 2021 $ 111,320 87,400 236,555 59,800 250,700 557,750 (119,600 ) $1,183,925 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings $ 234,600 37,950 253,000 506,000 538,200 $1,569,750 $ 154,790 48,300 335,800 402,500 242,535 $1,183,925 Total $893,458 Blue Spruce Corp. Income Statement Data For the Year Ended December 31, 2022 Sales revenue Less: Cost of goods sold $311,558 Operating expenses, excluding depreciation 28,543 Depreciation expense 106,950 Income tax expense 62,744 Interest expense 10,879 Loss on disposal of plant assets 17,250 537,924 $ 355,534 Net income Additional information: 1. New plant assets costing $230,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $132,250 and accumulated depreciation of $111,550 were sold for $3,450 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $59,869 was declared and paid during the year. 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).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Financial Accounting

Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin

7th Canadian Edition

0135433061, 9780135433065

More Books

Students also viewed these Accounting questions