Condensed financial data of Cheng Inc. follow. Additional information: 1. New equipment costing $85,000 was purchased for

Question:

Condensed financial data of Cheng Inc. follow.

CHENG INC. Comparative Balance Sheets December 31 Assets 2017 2016 $ 48,400 33,000 Cash $ 80,800 Accounts receivable 92,800 117,500 28,400 143,000 270,000 (50,000) Inventory Prepaid expenses 102,850 26,000 114,000 242,500 (52,000) Investments Equipment Accumulated depreciation-equipment Total $682,500 $514,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable



Additional information:

1. New equipment costing $85,000 was purchased for cash during the year.

2. Old equipment having an original cost of $57,500 was sold for $1,500 cash.

3. Bonds matured and were paid off at face value for cash.

4. A cash dividend of $40,350 was declared and paid during the year.


Instructions

Prepare a statement of cash flows using the indirect method.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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