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The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is shown as follows: 1 Dec. 31, 20Y3 Dec. 31, 20Y2 2
The comparative balance sheet of Iglesias Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
| 1 | Dec. 31, 20Y3 | Dec. 31, 20Y2 | |
|---|---|---|---|
| 2 | Assets | ||
| 3 | Cash | $186,000.00 | $180,000.00 |
| 4 | Accounts receivable (net) | 540,000.00 | 480,000.00 |
| 5 | Inventories | 924,000.00 | 900,000.00 |
| 6 | Investments | 0.00 | 120,000.00 |
| 7 | Land | 600,000.00 | 0.00 |
| 8 | Equipment | 1,680,000.00 | 1,440,000.00 |
| 9 | Accumulated depreciation-equipment | (720,000.00) | (600,000.00) |
| 10 | Total assets | $3,210,000.00 | $2,520,000.00 |
| 11 | Liabilities and Stockholders Equity | ||
| 12 | Accounts payable | $408,000.00 | $360,000.00 |
| 13 | Accrued expenses payable | 54,000.00 | 60,000.00 |
| 14 | Dividends payable | 36,000.00 | 30,000.00 |
| 15 | Common stock, $4 par | 840,000.00 | 720,000.00 |
| 16 | Excess of paid-in capital over par | 240,000.00 | 210,000.00 |
| 17 | Retained earnings | 1,632,000.00 | 1,140,000.00 |
| 18 | Total liabilities and stockholders equity | $3,210,000.00 | $2,520,000.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
| a. | The investments were sold for $210,000 cash. |
| b. | Equipment and land were acquired for cash. |
| c. | There were no disposals of equipment during the year. |
| d. | The common stock was issued for cash. |
| e. | There was a $600,000 credit to Retained Earnings for net income. |
| f. | There was a $108,000 debit to Retained Earnings for cash dividends declared. |
Required:
| Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required |
| Labels | |
| December 31, 20Y3 | |
| For the Year Ended December 31, 20Y3 | |
| Amount Descriptions | |
| Cash received from sale of investments | |
| Cash paid for purchase of land | |
| Cash paid for purchase of equipment | |
| Cash received from issuing common stock | |
| Cash dividends | |
| Decrease in accounts payable | |
| Decrease in accounts receivable | |
| Decrease in accrued expenses payable | |
| Decrease in inventories | |
| Depreciation | |
| Gain on sale of investments | |
| Increase in accounts payable | |
| Increase in accounts receivable | |
| Increase in accrued expenses payable | |
| Increase in inventories | |
| Loss on sale of investments | |
| Net increase in cash | |
| Net decrease in cash | |
| Net cash flows from operating activities | |
| Net cash flows used for operating activities | |
| Net cash flows from investing activities | |
| Net cash flows used for investing activities | |
| Net cash flows from financing activities | |
| Net cash flows used for financing activities | |
| Net income |
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