Assets Cash Accounts receivable. Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Balance Sheets As of December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information Year 2 Income Statement For the Year Ended December 31, Year 2 $ 70,255 33,900 154,702 2,455 253,610 (138,690) 187, 250 $ 563,482 $ 69,971 30,497 250,500 212,514 $ 563,482 $ 40,640 24,860 Year 1 170, 170 4,910 289,430 (230,080) 75, 150 $375,080 $1,497,000 (795,606) 701,394 99,500 70,070 $375,080 (21,130) (23,580) (258,400) (255,840) $ 142,444 79,370 26,140 . Purchased land for $112,100. . Purchased new equipment for $96,800. . Sold old equipment that cost $132,620 with accumulated depreciation of $112,520 for $20,100 cash. Issued common stock for $51,000. Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash utflows should be indicated by a minus sign.)
Assets Cash Accounts receivable. Merchandise inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Balance Sheets As of December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information Year 2 Income Statement For the Year Ended December 31, Year 2 $ 70,255 33,900 154,702 2,455 253,610 (138,690) 187, 250 $ 563,482 $ 69,971 30,497 250,500 212,514 $ 563,482 $ 40,640 24,860 Year 1 170, 170 4,910 289,430 (230,080) 75, 150 $375,080 $1,497,000 (795,606) 701,394 99,500 70,070 $375,080 (21,130) (23,580) (258,400) (255,840) $ 142,444 79,370 26,140 . Purchased land for $112,100. . Purchased new equipment for $96,800. . Sold old equipment that cost $132,620 with accumulated depreciation of $112,520 for $20,100 cash. Issued common stock for $51,000. Required Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash utflows should be indicated by a minus sign.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning