Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Balance Sheets As of December 31 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income Additional Data $38,810 (15,383) 23,427 (3,925) 19,502 500 (50) $19,952 Year 2 $24,843 2,492 6,517 20,854 (10,472) 16,379 $60,613 $2,490 2,695 20,700 34,728 $60,613 Year 1 $2,506 1,495 6,110 42,384 (17,390) 10,329 $45,434 $4,022 6,160 10,500 24,752 $45,434 1. During Year 2, the company sold equipment was $10,843 $18,357; it had originally cost $28,700. Accumulated depreciation on this equipment the time of the sale. Also, the company purchased equipment for $7,170 cash. 2. The company sold land that had cost $4,150. This land was sold for $4,100, resulting in the recognition of a $50 loss. Also, common stock was issued in exchange for title to land that was valued at $10,200 at the time of exchange. 3. Paid dividends of $9,976. Required Prepare a statement of cash flows using the indirect method. Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.
Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Balance Sheets As of December 31 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income Additional Data $38,810 (15,383) 23,427 (3,925) 19,502 500 (50) $19,952 Year 2 $24,843 2,492 6,517 20,854 (10,472) 16,379 $60,613 $2,490 2,695 20,700 34,728 $60,613 Year 1 $2,506 1,495 6,110 42,384 (17,390) 10,329 $45,434 $4,022 6,160 10,500 24,752 $45,434 1. During Year 2, the company sold equipment was $10,843 $18,357; it had originally cost $28,700. Accumulated depreciation on this equipment the time of the sale. Also, the company purchased equipment for $7,170 cash. 2. The company sold land that had cost $4,150. This land was sold for $4,100, resulting in the recognition of a $50 loss. Also, common stock was issued in exchange for title to land that was valued at $10,200 at the time of exchange. 3. Paid dividends of $9,976. Required Prepare a statement of cash flows using the indirect method. Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The comparative balance sheets and income statements for Rundle Company follow:
Balance Sheets
As of December 31
Assets
Cash
Accounts receivable
Inventory
Equipment
Accumulated depreciation-equipment
Land
Total assets
Liabilities and equity
Accounts payable (inventory)
Long-term debt
Common stock
Retained earnings
Total liabilities and equity
Income Statement
For the Year Ended December 31, Year 2
Sales revenue
Cost of goods sold
Gross margin
Depreciation expense
Operating income
Gain on sale of equipment
Loss on disposal of land
Net income
Additional Data
$38,810
(15,383)
23,427
(3,925)
19,502
500
(50)
$19,952
Year 2
$24,843
2,492
6,517
Cash flows from operating activities:
20,854
(10,472)
16,379
$60,613
$2,490
2,695
20,700
34,728
$60,613
RUNDLE COMPANY
Statement of Cash Flows
For the Year Ended December 31, Year 2
Year 1
$2,506
1,495
6,110
1. During Year 2, the company sold equipment for $18,357; it had originally cost $28,700. Accumulated depreciation on this equipment
was $10,843 at the time of the sale. Also, the company purchased equipment for $7,170 cash.
2. The company sold land that had cost $4,150. This land was sold for $4,100, resulting in the recognition of a $50 loss. Also, common
stock was issued in exchange for title to land that was valued at $10,200 at the time of exchange.
3. Paid dividends of $9,976.
Less: Increase/Decrease in current assets and current liabilities:
42,384
(17,390)
10,329
$45,434
Required
Prepare a statement of cash flows using the indirect method.
Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.
$4,022
6,160
10,500
24,752
$45,434
1 Brow
4 of 5
HH
Maut
Transcribed Image Text:3. Paid dividends of $9,976.
Required
Prepare a statement of cash flows using the indirect method.
Note: Amounts to be deducted and cash outflows should be indicated by a minus sign.
RUNDLE COMPANY
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities:
Less: Increase/Decrease in current assets and current liabilities:
Plus: Noncash charges
Cash flows from investing activities:
Cash flows from financing activities:
Ending cash balance
Schedule of noncash investing and financing activities:
$
$
0
0
0
0
0
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