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Statement of Cash FlowsIndirect Method The comparative balance sheet of Coulson, Inc. at December 31, 2016 and 2015, is as follows: Dec. 31, 2016 Dec.
Statement of Cash FlowsIndirect Method
The comparative balance sheet of Coulson, Inc. at December 31, 2016 and 2015, is as follows:
Dec. 31, 2016 | Dec. 31, 2015 | ||||
Assets | |||||
Cash | $300,600 | $337,800 | |||
Accounts receivable (net) | 704,400 | 609,600 | |||
Inventories | 918,600 | 865,800 | |||
Prepaid expenses | 18,600 | 26,400 | |||
Land | 990,000 | 1,386,000 | |||
Buildings | 1,980,000 | 990,000 | |||
Accumulated depreciationbuildings | (397,200) | (366,000) | |||
Equipment | 660,600 | 529,800 | |||
Accumulated depreciationequipment | (133,200) | (162,000) | |||
Total assets | $5,042,400 | $4,217,400 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $594,000 | $631,200 | |||
Income taxes payable | 26,400 | 21,600 | |||
Bonds payable | 330,000 | 0 | |||
Common stock, $20 par | 320,000 | 180,000 | |||
Paid-in capital: Excess of issue price over parcommon stock | 950,000 | 810,000 | |||
Retained earnings | 2,822,000 | 2,574,600 | |||
Total liabilities and stockholders' equity | $5,042,400 | $4,217,400 |
The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2016 are as follows:
ACCOUNT Land | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 1,386,000 | |||
Apr. 20 | Realized $456,000 cash from sale | 396,000 | 990,000 |
ACCOUNT Buildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 990,000 | |||
Apr. 20 | Acquired for cash | 990,000 | 1,980,000 |
ACCOUNT Accumulated DepreciationBuildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 366,000 | |||
Dec. 31 | Depreciation for year | 31,200 | 397,200 |
ACCOUNT Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 529,800 | |||
Jan. 26 | Discarded, no salvage | 66,000 | 463,800 | ||
Aug. 11 | Purchased for cash | 196,800 | 660,600 |
ACCOUNT Accumulated Depreciation-Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 162,000 | |||
Jan. 26 | Equipment discarded | 66,000 | 96,000 | ||
Dec. 31 | Depreciation for year | 37,200 | 133,200 |
ACCOUNT Bonds Payable | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
May 1 | Issued 20-year bonds | 330,000 | 330,000 |
ACCOUNT Common Stock, $20 par | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 180,000 | |||
Dec. 7 | Issued 7,000 shares of common stock for $40 per share | 140,000 | 320,000 |
ACCOUNT Paid-in Capital in Excess of ParCommon Stock | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 810,000 | |||
Dec. 7 | Issued 7,000 shares of common stock for $40 per share | 140,000 | 950,000 |
ACCOUNT Retained Earnings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
2016 | |||||
Jan. 1 | Balance | 2,574,600 | |||
Dec. 31 | Net income | 326,600 | 2,901,200 | ||
Dec. 31 | Cash dividends | 79,200 | 2,822,000
|
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
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