Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheets and income statements for Dragon Company follow. Balance Sheets As of December 31 Year 2 Year i Assets Cash Accounts receivable

image text in transcribed

image text in transcribed

image text in transcribed

The comparative balance sheets and income statements for Dragon Company follow. Balance Sheets As of December 31 Year 2 Year i Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity $24,498 $ 2,699 2,097 1,258 6,599 6,187 21,814 43,824 (8,767) (16,089) 17,9668 ,406 $64,207 $ 46,285 $ 2,704 2,811 23,200 35, 492 $64,207 $ 4,369 6,425 10,500 24,991 $ 46,285 Income Statement For the Year Ended December 31, Year 2 $ 39,000 Cost of goods sold (15,458) Gross margin 23,542 Depreciation expense (3,150) Operating income 20, 392 Gain on sale of equipment 650 Loss on disposal of land (40) Net income $ 21,002 Additional Data 1. During Year 2, the company sold equipment for $18,778; it had originally cost $28,600. Accumulated depreciation on this equipment was $10,472 at the time of the sale. Also, the company purchased equipment for $6,590 cash. 2. The company sold land that had cost $3,140. This land was sold for $3,100, resulting in the recognition of a $40 loss. Also, common stock was issued in exchange for title to land that was valued at $12,700 at the time of exchange. 3. Paid dividends of $10,501. Required Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) GYPSY COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increases in current assets and Decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities

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_2

Step: 3

blur-text-image_3

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

Auditing Sustainable Development Goals Key Principles And Tools For Supply Chain

Authors: Barden Gonzalez

1st Edition

B0BZFDM86C, 979-8388651501

More Books

Students also viewed these Accounting questions