Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Comparative statements of financial position for Anderson Inc. appear below: ANDERSON INC. Comparative Statements of Financial Position Assets Dec. 31, 2018 Dec. 31, 20

image text in transcribed

3. Comparative statements of financial position for Anderson Inc. appear below: ANDERSON INC. Comparative Statements of Financial Position Assets Dec. 31, 2018 Dec. 31, 20 Cash $ 29,000 $ 10,000 Accounts receivable 28,000 19,000 Prepaid expenses 9,000 12,000 Inventory 37,000 54,000 Long-term investments 0 53,000 Equipment 110,000 48,000 Accumulated depreciationequipment (26,000) (22,000) Total assets $187,000 $174,000 Liabilities and Shareholders' Equity Accounts payable $ 21,000 $ 9,000 Mortgage payable 37,000 45,000 Common shares 40,000 23,000 Retained earnings 89,000 97,000 Total liabilities and shareholders' equity $187.000 $174.000 Additional information regarding fiscal 2018: 1. Net income for the year was $27,000. This amount includes the loss on sale of long- term investments of $5,000. 2. Cash dividends of $35,000 were declared and paid during the year. 3. Long-term investments with a carrying amount of $53,000 were sold for $48,000 cash. Instructions Using the indirect method, prepare a statement of cash flows for the year ended December 31, 2018

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Reporting, Analysis And Decision Making

Authors: Shirley Carlon

6th Edition

0730363279, 9780730363279

More Books

Students also viewed these Accounting questions

Question

1. What does this mean for me?

Answered: 1 week ago