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Sterling Corporation's recent comparative balance sheet and income statement follow. table [ [ Balance Sheet, December 3 1 , Prior Year,Current Year,Difference ] ,

Sterling Corporation's recent comparative balance sheet and income statement follow.
\table[[Balance Sheet, December 31,Prior Year,Current Year,Difference],[Assets,,,],[Cash and cash equivalents,$34,000,$33,500,$(500)],[Accounts receivable (net),12,000,17,000,5,000],[Inventory,16,000,14,000,(2,000)],[Investment, long-term,6,000,-,(6,000)],[Fixed assets,80,000,98,000,18,000],[Accumulated depreciation,(48,000),(39,000),9,000],[Total assets,$100,000,$123,500,$23,500],[Liabilities and Stockholders' Equity,,,],[Accounts payable,$19,000,$12,000,$(7,000)],[Bonds payable,10,000,30,000,20,000],[Common stock, no-par,50,000,65,000,15,000],[Retained earnings,21,000,28,000,7,000],[Treasury stock,-,(11,500),(11,500)],[Total liabilities and stockholders' equity,$100,000,$123,500,$23,500]]
\table[[Income Statement, For,],[Year Ended, December 31,Current Year],[Sales revenue,$70,000],[Cost of goods sold,(42,000)],[Gross margin,28,000],[Depreciation expense,(5,000)],[Other operating expenses,(18,000)],[Gain on sale of investments,3,000],[Loss on sale of fixed assets,(1,000)],[Net income,$7,000]]Sterling Corporation's recent comparative balance sheet and income statement follow.
\table[[Balance Sheet, December 31,Prior Year,Current Year,Difference],[Assets,,,],[Cash and cash equivalents,$34,000,$33,500,$(500)],[Accounts receivable (net),12,000,17,000,5,000],[Inventory,16,000,14,000,(2,000)],[Investment, long-term,6,000,-,(6,000)],[Fixed assets,80,000,98,000,18,000],[Accumulated depreciation,(48,000),(39,000),9,000],[Total assets,$100,000,$123,500,$23,500],[Liabilities and Stockholders' Equity,,,],[Accounts payable,$19,000,$12,000,$(7,000)],[Bonds payable,10,000,30,000,20,000],[Common stock, no-par,50,000,65,000,15,000],[Retained earnings,21,000,28,000,7,000],[Treasury stock,-,(11,500),(11,500)],[Total liabilities and stockholders' equity,$100,000,$123,500,$23,500]]
\table[[Income Statement, For,],[Year Ended, December 31,Current Year],[Sales revenue,$70,000],[Cost of goods sold,(42,000)],[Gross margin,28,000],[Depreciation expense,(5,000)],[Other operating expenses,(18,000)],[Gain on sale of investments,3,000],[Loss on sale of fixed assets,(1,000)],[Net income,$7,000]]
1. Sold fixed assets for cash; cost, $21,000, and two-thirds depreciated.
2. Purchased fixed assets for cash, $9,000.
3. Purchased fixed assets; exchanged bonds of $30,000(face value and fair value) in payment.
4. Sold the long-term investments for cash. Assume carrying value of the investment is equal to its original purchase price.
5. Purchased treasury stock for cash, $11,500.
6. Retired bonds payable at maturity date by issuing common stock, $10,000.
7. Issued common stock for cash, $5,000.
Prepare the statement of cash flows for the current year ended December 31, assuming the indirect method is used in presenting cash flows from operating activities.
Note: Indicate a subtraction in the cash flow statement with a negative sign with the amount.
Prepare the statement of cash flows for the current year ended December 31, assuming the indirect method is used in presenting cash flows from operating activities.
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