AssetsCashAccounts receivableInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableLong-term notes payableTotal liabilitiesEquityCommon stock, $5 par valuePaid-in capital in excess of par, common stockRetained earningsTotal liabilities and equityFORTEN COMPANYComparative Balance SheetsDecember 31Cash flows from operating activitiesd. Pald $46,525 cash to reduce the long-term notes payable.e. Issued 2,600 shares of common stock for $20 cash per share.f. Declared and paid cash dividends of $50.300.Adjustments to reconcile net income to net cash provided by operations:Income statement items not affecting cashCash flows from investing activitiesCurrent Year$ 51,40067,310277,1561,300Changes in current assets and current liabilitiesCash flows from financing activities:397,166156,500(37,125)$ 516,541Additional Information on Current Year Transactionsa. The loss on the cash sale of equipment was $6.125 (details in b).b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash.c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for thebalance.$ 54,14174,800128,941164,25039,000184,350$ 516,541FORTEN COMPANYStatement of Cash FlowsFor Current Year Ended December 31Net increase (decrease) in cashCash balance at December 31, prior yearCash balance at December 31, current yearRequired:1. Prepare a complete statement of cash flows using the Indirect method for the current year.Note: Amounts to be deducted should be indicated with a minus sign.Prior Year$ 74,50051,625252,8002,025380,950109,000(46,500)$ 443,450$ 116,17555,950172,125151,2500120,075$ 443,450

The cash flow statement is prepared at the end of the period to know the cash position. It reflects…

Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Pald $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50.300. Required: 1. Prepare a complete statement of cash flows using the Indirect method for the current year.

Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Pald $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50.300. Required: 1. Prepare a complete statement of cash flows using the Indirect method for the current year.

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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The loss on the cash sale of equipment was $20,125 (details in b). Sold equipment costing 591,875, with accumulated depreciation of $45,125, for $26, 625 cash. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long- term notes payable for the balance. Paid $52,125 cash to reduce the long-term notes payable. Issued 4,000 shares of common stock for $20 cash per share. Declared and paid cash dividends of $53, 100. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year.
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Question 8.3 explanation please.
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Extract from the statement of P&L and OCI of Don Ltd for year ended 30 June 20X8 and the Balance Sheet at 30 June 20X7 and 20X8 are given below. 20X7 20X8 Sales $2,120,000 Interest revenue $3,000 Loss on sale of plant and equipment ($25,000) Current Assets Interest receivable $1,500 $3,000 Non-current assets Plant and equipment (at cost) $410,000 $425,000 (-) Accumulated depreciation ($85,000) ($102,000) Loan to CEO $60,000 $45,000 Current liabilities Trade Payables $14,200 $34,250 Additional information: On 1 January 20X8 Don Ltd sold plant and equipment with a carrying amount of $75,000 (cost $100,000) and received $50,000 cash. An item of plant and equipment was purchased on 29 June 20X8. Not all of this was paid for with cash. $30,000 of this amount was purchased on credit and is in the trade payables balance at 30 June 20X8. Don Ltd…
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