Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the Star Inc financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2014,

image text in transcribed
image text in transcribed
Use the Star Inc financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method Additional Information a Purchased machinery for $36,000 cash b. Sold the long-term investment on January 1, 2014 for $11,000 Sold machinery for $13,000 cash that had orginally cost $50,000 and had $32,000 of accumulated depreciation 1 d Issued $37.006 of bonds payable at face value e. The short-term investment is a treasury bill that was purchased with maturity in 90 days. ma Star Inc Melect one Comparative Balance Sheet information Statement of Cash Flows December 31 Gelecom Assets 2014 2013 Cash flows from operating activities Com Cash 274,800 185,000 Short-term investments 20.000 14,000 Adjust to reconcile net income to cash provided by operact Con Accounts receivable 70,100 53,000 Merchandise inventory 57.100 192.000 Long term investment 0 29,000 Cash flows from investing activities Machinery 226,000 240,000 3.co Accumulated depreciation (108.000) (115000) Total assets 540.000 500.000 Cash flows from financing activities mga Liabilities and Equity Accounts payable 42.000 65.000 Net increase (decrease) in cash Dividends payable 5,000 38 000 Cash at beginning of year 37 000 0 Bonds payable Cash at end of year COI Share capital 348,000 348 000 108 000 Retained earnings 147.000 540 000 598.000 Col Total liabilities and equity eco Maces Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity 42,000 5,000 37,000 348,000 108,000 540,000 65,000 38,000 0 348,000 147 000 598,000 Net increase (decrease) in cash Cash at beginning of year Cash at end of year Star Inc Income Statement For Year Ended December 31, 2014 Sales 640,000 Cost Of Goods Sold 590,000 Depreciation expense 25,000 Other expenses 41.000 (656,000) Loss on sale of long-term investment (18,000) Loss on sale of machinery (5,000) Net loss 39.000

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

Step: 3

blur-text-image

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

Lawyers And The Proceeds Of CrimeThe Facilitation Of Money Laundering And Its Control

Authors: Katie Benson

1st Edition

1138744867, 9781138744868

More Books

Students also viewed these Accounting questions

Question

Explain the factors that determine the degree of decentralisation

Answered: 1 week ago

Question

What Is acidity?

Answered: 1 week ago

Question

Explain the principles of delegation

Answered: 1 week ago

Question

State the importance of motivation

Answered: 1 week ago

Question

Discuss the various steps involved in the process of planning

Answered: 1 week ago