Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(SCF-Indirect Method and Balance Sheet) Ochoa Inc., had the following condensed balance sheet at the end of operations for 2011. During 2012, the following occurred.

image text in transcribed

(SCF-Indirect Method and Balance Sheet) Ochoa Inc., had the following condensed balance sheet at the end of operations for 2011. During 2012, the following occurred. A tract of land was purchased for $11,000. Bonds payable in the amount of $20,000 were retired at par. An additional $10,000 in common stock was issued at par. Dividends totaling $9,375 were paid to stockholders. Net income was $30,250 after deducting depreciation of $13,500. Land was purchased through the issuance of $22,500 in bonds. Ochoa Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale. Both current assets (other than cash) and current liabilities remained at the same amount. Instructions Prepare a statement of cash flows for 2012 using the indirect method. Prepare the condensed balance sheet for Ochoa Inc. as it would appear at December 31, 2012

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

Cyber Security Auditing Assurance And Awareness Through CSAM And CATRAM

Authors: Regner Sabillon

1st Edition

1799856097, 978-1799856092

More Books

Students also viewed these Accounting questions