Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the following account balances, prepare all sections of a completed statement of cash flows for the year ended 2018. For the operating section, use

Using the following account balances, prepare all sections of a completed statement of cash flows for the year ended 2018. For the operating section, use the indirect method.

2018 2017

Cash $ 30,000 $35,000

Accounts receivable, net 55,000 45,000

Inventory 65,000 45,000

Prepaid insurance 15,000 25,000

Equipment 90,000 75,000

Accumulated depreciation (18,000) (8,000)

Land 70,000 40,000

Total $307,000 $257,000

Accounts payable $ 65,000 $ 52,000

Accrued expenses payable 15,000 18,000

Notes payable, bank long-term 0 23,000

Bonds payable 30,000 0

Common stock, $10 par 189,000 159,000

Retained Earnings 8,000 5,000

Total $307,000 $257,000

Land was acquired for $30,000 in exchange for common stock at par: all equipment purchased is for cash. Equipment costing $10,000(40% depreciated) was sold for $3000. Cash dividends of $10,000 were declared and paid during 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

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

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

14th Global Edition

978-0273753872, 0273753878

More Books

Students also viewed these Accounting questions

Question

What do SMEs like IWT need to know about exporting?

Answered: 1 week ago

Question

How could managers approach these circumstances ethically?

Answered: 1 week ago