Assets Cash FURTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year Prior Year $ 88,500 $ 72,400 88,420 298,156 1,360 460,336 65,625 266,800 2,195 423,120 142,500 123,000 (44, 125) (53,500) $ 558,711 $ 68,141 72,000 140,141 185,250 60,000 173,320 $ 492,620 $ 137,175 72,750 209,925 d. Paid $52,125 cash to reduce the long-term notes payable. e. Issued 4,000 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,100. 165, 250 0 117,445 $ 558,711 $ 492,620 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the balance. Required: 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,
Assets Cash FURTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year Prior Year $ 88,500 $ 72,400 88,420 298,156 1,360 460,336 65,625 266,800 2,195 423,120 142,500 123,000 (44, 125) (53,500) $ 558,711 $ 68,141 72,000 140,141 185,250 60,000 173,320 $ 492,620 $ 137,175 72,750 209,925 d. Paid $52,125 cash to reduce the long-term notes payable. e. Issued 4,000 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,100. 165, 250 0 117,445 $ 558,711 $ 492,620 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the balance. Required: 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,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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subject-Accounting
Transcribed Image Text:Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
For Current Year Ended December 31
Changes in current assets and current liabilities
Cash flows from investing activities
Cash flows from financing activities:
Net increase (decrease) in cash
Cash balance at December 31, prior year
Cash balance at December 31, current year
Transcribed Image Text:Assets
Cash
FORTEN COMPANY
Comparative Balance Sheets
December 31
Accounts receivable
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Total liabilities.
Equity
Common stock, $5 par value
Paid-in capital in excess of par, common stock
Retained earnings
Total liabilities and equity
Current Year
$ 72,400
88,420
298,156
1,360
460,336
142,500
(44, 125)
$ 558,711
$ 68,141
72,000
140, 141
185,250
60,000
173,320
$ 558,711
Prior Year.
$ 88,500
65,625
266,800
2,195
d. Paid $52,125 cash to reduce the long-term notes payable.
e. Issued 4,000 shares of common stock for $20 cash per share.
f. Declared and paid cash dividends of $53,100.
423,120
123,000
(53,500)
$ 492,620
$ 137,175
72,750
209,925
165,250
0
117,445
$ 492,620
Additional Information on Current Year Transactions
a. The loss on the cash sale of equipment was $20,125 (details in b).
b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash.
c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the
balance..
Required:
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.
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