Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started