Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheets for 12/31/15 and 12/31/14 and the amount of the change for the Awesome Company are as follows: 2015 2014 Change Cash 33,500

The balance sheets for 12/31/15 and 12/31/14 and the amount of the change for the Awesome Company are as follows:

2015

2014

Change

Cash

33,500

13,000

20,500

Accounts receivable

12,250

10,000

2,250

Less: allowance for doubtful accounts

(3,000)

(4,500)

(1,500)

Inventory

12,000

9,000

3,000

Investments non-current

-

3,000

(3,000)

Buildings

-

29,750

(29,750)

Less: accumulated depreciation - buildings

-

(6,000)

(6,000)

Equipment

45,000

20,000

25,000

Less: accumulated depreciation - equipment

(2,000)

(4,500)

(2,500)

Copyrights

5,000

6,250

(1,250)

Total Assets

102,750

76,000

26,750

Accounts payable

5,000

3,000

2,000

Dividends payable

-

5,000

(5,000)

Notes payable, short-term (non-trade)

3,000

4,000

(1,000)

Notes payable, long-term

31,000

25,000

6,000

Common stock

43,000

33,000

10,000

Retained earnings

20,750

6,000

14,750

Total Liabilities and Stockholders' Equity

102,750

76,000

26,750

Additional 2015 data:

a.Equipment that cost $11,000 with related accumulated depreciation totaling $4,400 at the time of the disposal was sold for $2,500 cash.

b.A long-term note payable with a balance of $10,000 was paid by issuing common stock.

c.Cash dividends of $5,000 were paid.

d.On January 1, 2015, the building was completely destroyed by a flood. Insurance proceeds totaled $32,000 received in cash. The related taxes total $2,000.

e.Investments non-current, classified as available for sale, were sold for $4,700 cash. The company has made similar sales and investments in the past.

f.Cash of $20,000 was paid for the acquisition of equipment AND a $16,000 long-term note payable was issued for the acquisition of various equipment items.

g.Interest of $2,000 was paid in cash.

h.Income taxes of $6,500 were paid in cash.

Prepare a statement of cash flows. Use the indirect method for the operating activities section.

Be sure to present the required supplemental disclosures at the bottom of the statement.

Thank you!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions