Problem 12-9A Condensed financial data of Sheffield Corp. follow. Sheffield Corp. Comparative Balance Sheets December 31 Assets 2019 2018 Cash $106,200 $47,400 Accounts receivable 91,600 33,900 Inventory 111,800 101,500 Prepaid expenses 29,400 25,500 Investments 140,500 114,800 Equipment 264,200 242,100 Accumulated depreciation equipment (46,500) (52,900) Total $697,200 $512,300 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,300 16,100 111,000 220,000 238,800 $697,200 $67,100 17,300 149,300 174,700 103,900 $512,300 $392,900 Sheffield Corp. Income Statement For the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 12,700 Depreciation expense 31,000 Income tax expense 27,600 Interest expense 4,400 Loss on disposal of plant assets 7,500 Net income 219,200 $173,700 Additional information: 1. New equipment costing $79,900 was purchased for cash during the year. 2. Old equipment having an original cost of $57,800 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $38,800 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).) Sheffield Corp. Statement of Cash Flows Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ Loss on Disposal of Plant Assets Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Prepaid Expenses IL U Issuance of Common Stock Payment of Cash Dividends Net Cash Provided by Financing Activities Problem 12-9A Condensed financial data of Sheffield Corp. follow. Sheffield Corp. Comparative Balance Sheets December 31 Assets 2019 2018 Cash $106,200 $47,400 Accounts receivable 91,600 33,900 Inventory 111,800 101,500 Prepaid expenses 29,400 25,500 Investments 140,500 114,800 Equipment 264,200 242,100 Accumulated depreciation equipment (46,500) (52,900) Total $697,200 $512,300 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total $111,300 16,100 111,000 220,000 238,800 $697,200 $67,100 17,300 149,300 174,700 103,900 $512,300 $392,900 Sheffield Corp. Income Statement For the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 12,700 Depreciation expense 31,000 Income tax expense 27,600 Interest expense 4,400 Loss on disposal of plant assets 7,500 Net income 219,200 $173,700 Additional information: 1. New equipment costing $79,900 was purchased for cash during the year. 2. Old equipment having an original cost of $57,800 was sold for $12,900 cash. 3. Bonds matured and were paid off at face value for cash. 4. A cash dividend of $38,800 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).) Sheffield Corp. Statement of Cash Flows Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ Loss on Disposal of Plant Assets Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Prepaid Expenses IL U Issuance of Common Stock Payment of Cash Dividends Net Cash Provided by Financing Activities
