Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash

image text in transcribedimage text in transcribed

The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment $261,570 $241,360 86,690 256,660 99,430 0 226,920 (69,090)(61,190) $987,070 $849,870 94,760 267,500 137,200 295,130 Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Dividends payable Common stock, $10 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $178,660 $167,420 22,100 7,650 41,640 115,580 495,480 $987,070 $849,870 17,770 9,870 53,300 200,380 527,090 Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $116,330 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 $71,550 credit to Retained Earnings for net income f. There was a $39,940 debit to Retained Earnings for cash dividends declared. 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. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: from operating acti Adjustments to reconcile net income to net cash flow from operating activities Changes in current operating assets and labilities: Net cash flow from operating activities Cash flows from investing activities Net cash flow used for investing activities Cash flows from financing activities: activiti Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year the yea

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Business Accounting Volume 2

Authors: Frank Wood

4th Edition

0582413435, 978-0582413436

More Books

Students also viewed these Accounting questions

Question

Make arguments for the union and for the employer.

Answered: 1 week ago