Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the following financial statements and additional information to: prepare a statement of cash flows for the year ended December 31, Year 2. Derby Company
Use the following financial statements and additional information to: prepare a statement of cash flows for the year ended December 31, Year 2. Derby Company Balance Sheets At December 31 Year 2 Year 1 Assets: Cash $85,600$65,200 Accounts receivable, net Merchandise inventory 72,850 56,750 Prepaid expenses 157,750 144,850 Equipment 280,600 245,600 Accumulated depreciation-Equipment (80,600) (97,600) Total assets $522,280 $427,480 Liabilities: Accounts payable $52,850$45,450 Income taxes payable 15,240 12,240 Notes payable (long term) 59,200 79,200 Total liabilities $127,290 $136,890 Equity: Common stock \begin{tabular}{ll} 200,000 & 150,000 \\ 53,000 & 40,000 \end{tabular} Paid-in capital in excess of par Retained earnings 141,990100,590 Total equity $394,990 $290,590 Total liabilities and equity $522,280 $427,480 Derby Company Income Statement For Year Ended December 31, Year 2 Additional Information a. A $20,000 long-term note payable is retired at its carrying value in exchange for cash. b. Cash dividend paid equals $42,000. c. New equipment is acquired for $120,000 cash. d. Received cash for the sale of equipment for $29,700 cash
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