Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Thomas Company's comparative balance sheets for December 31 of 2018 and 2017 are shown below. Assets Dec 31, 2018 Dec 31, 2017 Increase Decrease $
Thomas Company's comparative balance sheets for December 31 of 2018 and 2017 are shown below. Assets Dec 31, 2018 Dec 31, 2017 Increase Decrease $ 106,200 $ 53,300 $ 52,900 Cash Accounts Receivable (net) 12,200 10,400 1,800 Inventory 32,400 30,400 2,000 Prepaid Expenses 4,200 7,800 $ 3,600 Plant Assets 20,000 Accumulated Depreciation 86,000 (32,100) $ 208,900 66,000 (21,300) $ 146,600 10,800 Total Assets Liabilities and Stockholders' Equity Accounts Payable $ 20,500 $ 15,600 4,900 Wages Payable 800 4,600 3,800 Income Tax Payable 6,700 5,400 1,300 Bonds Payable 46,000 46,000 Common Stock, $10 par 65,000 55,000 10,000 Additional Paid-in Capital 50,000 35,000 15,000 abilities and Stockholders' Equity Accounts Payable $ 20,500 $ 15,600 4,900 Wages Payable 800 4,600 3,800 Income Tax Payable 6,700 5,400 1,300 Bonds Payable 46,000 ----- 46,000 Common Stock, $10 par 65,000 55,000 10,000 Additional Paid-in Capital 50,000 35,000 15,000 Retained Earnings 31,000 8,000 23,000 (3,100) ----- 3,100 Treasury Stock Total Liabilities and Stockholders' Equity $ 208,900 | $ 146,600 The following information is taken from Thomas's financial records. . During 2018, equipment was sold for $26,100. The equipment had an original cost of $29,000 and a current book value of $24,000. 1,000 shares of common stock were issued for $25 per share. Depreciation expense for 2018 was $15,800. Net income for the year was $7,000. Required: Prepare the financing activities section of the statement of cash flows for Thomas Company, indirect method. Note: The operating activities and investing activities sections have been completed. Financing Activities Cash received from: (Choose one) Cash paid out for: (Choose one) Net Cash Flow from (used for) Financing Activities
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