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(a) Prepare a statement of cash flows for 2012.

(a) Prepare a statement of cash flows for 2012.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E5-17 (Preparation of a Statement of Cash Flows and a Balance Sheet) Chekov Corporation's balance sheet at the end of 2011 included the following items. Current assets Land $235,000 Current liabilities $150,000 Bonds payable Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment 30,000 120,000 90,000 (30,000) (11,000) 100,000 180,000 44,000 Common stock Retained earnings Total $474,000 Patents 40,000 Total $474,000 The following information is available for 2012. 1. Net income was $55,000. 2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $9,000. 3. Depreciation expense was $4,000 on the building and $9,000 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $25,000. Current liabilities increased by $13,000. 6. An addition to the building was completed at a cost of $27,000. 7. A long-term investment in stock was purchased for $16,000. 8. Bonds payable of $50,000 were issued. 9. Cash dividends of $25,000 were declared and paid. 10. Treasury stock was purchased at a cost of $11,000. Instructions (Show only totals for current assets and current liabilities.) (a) Prepare a statement of cash flows for 2012.
Transcribed Image Text:E5-17 (Preparation of a Statement of Cash Flows and a Balance Sheet) Chekov Corporation's balance sheet at the end of 2011 included the following items. Current assets Land $235,000 Current liabilities $150,000 Bonds payable Buildings Equipment Accum. depr.-buildings Accum. depr.-equipment 30,000 120,000 90,000 (30,000) (11,000) 100,000 180,000 44,000 Common stock Retained earnings Total $474,000 Patents 40,000 Total $474,000 The following information is available for 2012. 1. Net income was $55,000. 2. Equipment (cost $20,000 and accumulated depreciation $8,000) was sold for $9,000. 3. Depreciation expense was $4,000 on the building and $9,000 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $25,000. Current liabilities increased by $13,000. 6. An addition to the building was completed at a cost of $27,000. 7. A long-term investment in stock was purchased for $16,000. 8. Bonds payable of $50,000 were issued. 9. Cash dividends of $25,000 were declared and paid. 10. Treasury stock was purchased at a cost of $11,000. Instructions (Show only totals for current assets and current liabilities.) (a) Prepare a statement of cash flows for 2012.
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