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The following financial information is obtained regarding Stallion Company: 12/31/19 12/31/18 Current Assets: Cash Accounts Receivable (net) Merchandise Inventory Prepaid Expenses Supplies 190,000 140,000 120,000
The following financial information is obtained regarding Stallion Company: 12/31/19 12/31/18 Current Assets: Cash Accounts Receivable (net) Merchandise Inventory Prepaid Expenses Supplies 190,000 140,000 120,000 46,000 90.000 150,000 2,000 4,000 7,000 3,000 Non-Current Assets: Land Plant Assets Accumulated Depreciation 100,000 200,000 (60,000) -0- 200,000 (40,000) Total Assets 700,000 452,000 Current Liabilities: Accounts Payable Accrued Liabilities 25,000 15,000 33,000 9,000 Non-current Liabilities: Notes Payable 100,000 20,000 Total Liabilities: 140,000 62.000 Common Stock ($1 Par Value) Common Stock-APIC Retained Earnings 200,000 50,000 310,000 140,000 10,000 240,000 Total Stockholders' Equity 560,000 390,000 Additional Data: A) 2019 Net Income was $170,000 balance. B) Land was acquired by taking out a Notes Payable for $90,000 and paying Cash for the C) All Common Stock was issued for Cash. REQUIRED: Prepare the Statement of Cash Flow for Stallion Company under the Indirect Method. HINT: Don't be afraid to be an Accounting Detective and draw T-accounts on scrap paper. That will help you with No Payable as well as with Depreciation Expense and Dividends which are not given here but can be easily calculated if yo are a good Accounting Detective
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