Question
The Walker Corporation reported the following balance sheet data for 2021 and 2020: 2021 2020 Cash $4 77,375 $ 22,955 Available-for sale securities (not cash
The Walker Corporation reported the following balance sheet data for 2021 and 2020: 2021 2020 Cash $4 77,375 $ 22,955 Available-for sale securities (not cash equivalents) 15,500 85,000 Accounts receivable 80,000 68,250 Inventory 165,000 145,000 Prepaid insurance 1,500 2,000 Land, buildings, and equipment 1,250,000 1,125,000 (572,000) 876,205 Accumulated depreciation (610,000) Total assets 979,375 $ Accounts payable 76,340 148,670 Salaries payable 20,000 24,500 Notes payable (current) 25,000 75,000 Bonds payable 200,000 Common stock 300,000 300,000 328,035 358,035 979,375 $ Retained earnings Total liabilities and shareholders' equity $ 876,205 Additional information for 2021: 1. Sold available for sale securities costing $69,500 for $74,000. 2. Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. 3. Issued 6% bonds payable at face value, $200,000. 4. Purchased new equipment for $145,000 cash. 5. Paid cash dividends of $20,000. 6. Net income was $50,000 Required: Prepare a complete statement of cash flows for 2021 in good form using the indirect method for cash flows from operating activities. %24
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