Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Debits > Credits > Credits by: Debits by:

image text in transcribed
image text in transcribed
image text in transcribed
Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Debits > Credits > Credits by: Debits by: Cash $ 81,600 Accounts receivable 170,400 Inventory $ 83,800 Prepaid expenses 4,600 Long-term loans to subsidiaries 115,000 Long-term investments 94,000 Plant and equipment 331,000 Accumulated depreciation 65,100 Accounts payable 49,300 Accrued liabilities 5,300 Income taxes payable 9,500 Bonds payable 404,000 Common stock 125,000 Retained earnings 76,000 $807,300 $807,300 The following additional information is available about last year's activities: a. Net income for the year was $_? b. The company sold equipment during the year for $35,800. The equipment originally cost $160,600 and it had $126,400 in accumulated depreciation at the time of sale. c. Cash dividends of $10,900 were declared and paid during the year. d. The beginning and ending balances in the plant and Equipment and Accumulated Depreciation accounts are given below: Plant and equipment Accumulated depreciation Beginning Ending $2,864,000 $3,195,000 $ 983,900 $1,049,000 e. The balance in the Cash account at the beginning of the year was $109,200; the balance at the end of the year was $ ? f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change, Required: Using the Indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) Answer is not complete. Yoric Company Statement of Cash Flows Operating activities Net Income Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Decrease in inventory Gain on sale of equipment Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Increase in prepaid expenses Gain on sale of equipment OOOOOOOOO 0 0 Investing activities: Proceeds from sale of equipment Depreciation Increase in accounts receivable Decrease in inventory Gain on sale of equipment Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Increase in prepaid expenses Gain on sale of equipment x 0 0 Investing activities: Proceeds from sale of equipment Additions to long-term investments Decrease in long-term loans to subsidiaries Additions to plant and equipment 0 Financing activities: Issuance of bonds payable Proceeds from sale of equipment Cash dividends paid Repurchase of common stock X Net increase in cash Beginning cash and cash equivalents Ending cash and cash equivalents 0 0 81,600 81,600 $

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

Financial Accounting The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

6th Edition

0324655231, 978-0324655230

More Books

Students also viewed these Accounting questions

Question

Understand highlights of legislation enacted in 1964 and beyond

Answered: 1 week ago