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Warner Company Comparative Balance Sheets December 31 2025 2024 Assets Cash $35,000 $ 20,000 Accounts receivable 20,000 14,000 Inventory 28,000 20,000 Property, plant, and equipment
Warner Company Comparative Balance Sheets December 31 2025 2024 Assets Cash $35,000 $ 20,000 Accounts receivable 20,000 14,000 Inventory 28,000 20,000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $111,000 $108,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $19,000 $ 15,000 7,000 8,000 17,000 33,000 18,000 14,000 50,000 38,000 $111,000 $108,000 Warner Company Income Statement For the Year Ended December 31, 2025 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $ 32,000 Additional data: 1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year, equipment was sold for $8,500 cash. This equipment originally cost $18,000 and had accumulated depreciation of $9,500 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WARNER COMPANY Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2025 Adjustments to reconcile net income to $ $
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