Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. Assets 2017 2016 Cash $58,200 $46,000 Accounts Receivable $41,100 $63,400 Inventory
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.
Assets | 2017 | 2016 |
---|---|---|
Cash | $58,200 | $46,000 |
Accounts Receivable | $41,100 | $63,400 |
Inventory | $148,900 | $145,600 |
Prepaid Expenses | $15,000 | $27,600 |
Land | $101,900 | $133,300 |
Buildings | $200,200 | $200,200 |
Accumulated Depreciation - Buildings | $60,300 | $33,600 |
Equipment | $228,500 | $155,400 |
Accumulated Depreciation - Equipment | $42,600 | $36,300 |
Total | $690,900 | $701,600 |
LIABIITIES AND STOCKHOLDERS EQUITY | ||
Accounts Payable | $46,000 | $39,700 |
Bonds Payable | $260,000 | $293,600 |
Common stock, $1 Par | $193,600 | $208,300 |
Retained Earnings | $191,300 | $208,300 |
Total | $690,900 | $701,600 |
Additional information:
1. | Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $12,600. | |
2. | Land was sold for cash at book value. | |
3. | Cash dividends of $61,000 were paid. | |
4. | Net income for 2017 was $44,000. | |
5. | Equipment was purchased for $94,900 cash. In addition, equipment costing $21,800 with a book value of $12,800 was sold for $5,900 cash. | |
6. | Bonds were converted at face value by issuing 33,600 shares of $1 par value common stock. |
Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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