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(a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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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A comparative statement of financial position for Blue Spruce Industries Inc. follows: BLUE SPRUCE INDUSTRIES INC. Statement of Financial Position December 31, 2020 Assets Cash Accounts receivable Inventory Land Equipment. 269,000 216,000 Accumulated depreciation-equipment (70,300) (43,500) Total $654,500 $579,900 Liabilities and Shareholders' Equity Accounts payable Bonds payable Common shares Retained earnings Total Additional information: December 31 2020 2019 $22,800 $35,800 122,000 55,600 234,000 191,000 77,000 125,000 $52,400 $59,500 163,800 213,800 233,000 183,000 205,300 123,600 $654,500 $579,900 1. Net income for the fiscal year ending December 31, 2020, was $130,000. 2. Cash dividends of $48,300 were declared and paid. Dividends paid are treated as financing activities. 3. Bonds payable amounting to $50,000 were retired through issuance of common shares. 4. Land was sold at a gain of $4,000. 5. No equipment was sold during the year. O (a) Prepare a statement cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BLUE SPRUCE INDUSTRIES INC. Statement of Cash Flows C
Transcribed Image Text:A comparative statement of financial position for Blue Spruce Industries Inc. follows: BLUE SPRUCE INDUSTRIES INC. Statement of Financial Position December 31, 2020 Assets Cash Accounts receivable Inventory Land Equipment. 269,000 216,000 Accumulated depreciation-equipment (70,300) (43,500) Total $654,500 $579,900 Liabilities and Shareholders' Equity Accounts payable Bonds payable Common shares Retained earnings Total Additional information: December 31 2020 2019 $22,800 $35,800 122,000 55,600 234,000 191,000 77,000 125,000 $52,400 $59,500 163,800 213,800 233,000 183,000 205,300 123,600 $654,500 $579,900 1. Net income for the fiscal year ending December 31, 2020, was $130,000. 2. Cash dividends of $48,300 were declared and paid. Dividends paid are treated as financing activities. 3. Bonds payable amounting to $50,000 were retired through issuance of common shares. 4. Land was sold at a gain of $4,000. 5. No equipment was sold during the year. O (a) Prepare a statement cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BLUE SPRUCE INDUSTRIES INC. Statement of Cash Flows C
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