Accounts receivable Inventory Prepaid expenses Long-term investments Equipment Accumulated depreciation-equipment Total assets $123,000 Liabilities and Stockholders' Equity Accounts payable $ 17,000 36,000 Bonds payable Common stock 40,000 Retained earnings 30,000 Total liabilities and stockholders' equity $123.000 Additional information: 1. Net income for the year ending December 31, 2020 was $35,000. 2. Cash dividends of $15,000 were declared and paid during the year. 3. Long-term investments that had a cost of $17,000 were sold for $14 4. Sales for 2020 were $120,000. Instructions Prepare a statement of cash flows for the year ended December 31. method. - Step 1: 35,000 20,000 18,000 25,000 6,000 -0- 60,000 (20,000)

Accounts receivable Inventory Prepaid expenses Long-term investments Equipment Accumulated depreciation-equipment Total assets $123,000 Liabilities and Stockholders' Equity Accounts payable $ 17,000 36,000 Bonds payable Common stock 40,000 Retained earnings 30,000 Total liabilities and stockholders' equity $123.000 Additional information: 1. Net income for the year ending December 31, 2020 was $35,000. 2. Cash dividends of $15,000 were declared and paid during the year. 3. Long-term investments that had a cost of $17,000 were sold for $14 4. Sales for 2020 were $120,000. Instructions Prepare a statement of cash flows for the year ended December 31. method. - Step 1: 35,000 20,000 18,000 25,000 6,000 -0- 60,000 (20,000)

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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