Question
The comparative balance sheets and income statements for Gypsy Company follow. 1. During Year 2, the company sold equipment for $18,233; it had originally cost
The comparative balance sheets and income statements for Gypsy Company follow.
1. During Year 2, the company sold equipment for $18,233; it had originally cost $29,400. Accumulated depreciation on this equipment was $11,817 at the time of the sale. Also, the company purchased equipment for $7,480 cash.
2. The company sold land that had cost $4,260. This land was sold for $4,200, resulting in the recognition of a $60 loss. Also, common stock was issued in exchange for title to land that was valued at $10,800 at the time of exchange.
3. Paid dividends of $9,628. Required Prepare a statement of cash flows using the indirect method. (Cash outflows should be indicated with a minus sign.)
Extra Information: -The cells highlighted in blue, are required to be filled in. Any other cell you may leave blank. -The entire first row of cells on the left-hand side are all drop-down menus requiring words and NOT numbers. Here is an example of what I mean: Please, if you can: fill out this problem in the same format that the cash flow statement is given in.
Decrease in accounts payable Decrease in accounts receivable Decrease in inventory Depreciation expenseStep by Step Solution
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