Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Mass Media Corporation reported the following balance sheet data for 2009 and 2008. Cash Available-for-sale securities (not cash equivalents) Accounts receivable 2009 2008 $

The Mass Media Corporation reported the following balance sheet data for 2009 and 2008. Cash Available-for-sale securities (not cash equivalents) Accounts receivable 2009 2008 $ 77,375 $ (22,955) 15,500 85,000 80,000 68,250 165,000 145,000 1,500 2,000 Inventory Prepaid insurance Land, buildings, and equipment 1,250,000 Accumulated depreciation Total assets Accounts payable (610,000) $ 979,375 1,125,000 (572,000) $ 830,295 $ 76,340 $ 102,760 Salaries payable Notes payable (current) 20,000 25,000 24,500 75,000 Bonds payable Common stock 200,000 0 300,000 300,000 Retained earnings 358,035 328,035 Total liabilities and shareholders' equity $ 979,375 $ 830,295 Additional information for 2009: (1.) Net income was $50,000. (2) Sold available-for-sale securities costing $69,500 for $74,000. (3.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. (4.) Issued 6% bonds payable at par, $200,000. (5.) Purchased new equipment for cash $145,000. (6.) Paid cash dividends of $20,000. Required: Prepare a statement of cash flows for 2009 in good form using the indirect method for cash flows from operating activitiesimage text in transcribed

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

Contemporary Environmental Accounting Issues Concepts And Practice

Authors: Stefan Schaltegger, Roger Burritt

1st Edition

1874719349, 9781874719342

More Books

Students also viewed these Accounting questions