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Assets Current assets: Cash.. $ (1,100) $ 3,950 Accounts recelvable. 4,100 2,300 Inventory.. 3,250 1,150 Prepald insurance. Total current assets. 90 210 3 6,340 5 7,610 Land, buildings, and equipment: Land ... $15,200 $15,200 Buildings .. Less: Accumulated depreciation. Equipment... Less: Accumulated depreciation... Total land, buildings, and equipment. Total assets .. $ 35,000 (15,000) इ24,150 $ 35,000 (16,500) 18,500 20,000 $ 28,350 (20,900) (17,900) 6,250 $41,450 $49,060 7,450 341,150 $47,490 Liabilities and Stockholders' Equity Current liabilities: $ 3,600 $ 2,800 Accounts payable . Income taxes payable. Wages payable.. Notes payable-current portion.... 950 1,850 1,100 2,150 3,000 4,500 Total current liabilities.. $ 8,650 $11,300 Long-term liabilities: Notes payable... 11,250 14,250 Stockholders' equity: $ 19,500 $ 18,000 Capital stock.. Retained earnings. Total stockholders' equity. Total labilities and stockholders' equity. 8,090 5,510 27,590 23,510 347,490 349,060 tructions: Prepare a statement of cash flows using the indirect method.

Assets Current assets: Cash.. $ (1,100) $ 3,950 Accounts recelvable. 4,100 2,300 Inventory.. 3,250 1,150 Prepald insurance. Total current assets. 90 210 3 6,340 5 7,610 Land, buildings, and equipment: Land ... $15,200 $15,200 Buildings .. Less: Accumulated depreciation. Equipment... Less: Accumulated depreciation... Total land, buildings, and equipment. Total assets .. $ 35,000 (15,000) इ24,150 $ 35,000 (16,500) 18,500 20,000 $ 28,350 (20,900) (17,900) 6,250 $41,450 $49,060 7,450 341,150 $47,490 Liabilities and Stockholders' Equity Current liabilities: $ 3,600 $ 2,800 Accounts payable . Income taxes payable. Wages payable.. Notes payable-current portion.... 950 1,850 1,100 2,150 3,000 4,500 Total current liabilities.. $ 8,650 $11,300 Long-term liabilities: Notes payable... 11,250 14,250 Stockholders' equity: $ 19,500 $ 18,000 Capital stock.. Retained earnings. Total stockholders' equity. Total labilities and stockholders' equity. 8,090 5,510 27,590 23,510 347,490 349,060 tructions: Prepare a statement of cash flows using the indirect method.

FINANCIAL ACCOUNTING
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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Annotatior ACCOU ng Sparkling Cleaner Company reported net income of $7,450 for 2015 but has been showing an overdraft in its bank account in recent months. The manager has contacted you as the auditor for an explanation. The comparative balance sheet was given to you for examination, along with the following information. (a) Equipment was sold for $1,700 , its cost was $3,000 , and its book value was $800 . The gain was reported as Other Revenue. (b) Cash dividends of $4,870 were paid. Sparkling Cleaner Company Comparative Balance Sheet Dec. 31, 2015 Dec. 31, 2014 Assets Current assets: Cash. $ (1,100) $ 3,950 Accounts recelvable. 4,100 2,300 Inventory. 3,250 1,150 Prepaid insurance Total current assets 90 210 3 6,340 $ 7,610 Land, buildings, and equipment: Land $15,200 $15,200 $ 35,000 $ 35,000 Buildings. Less: Accumulated depreciation (16,500) 18,500 (15,000) 20,000 Equipment. 5 28,350 $ 24,150 Less: Accumulated depreciation... (20,900) 7,450 (17,900) 6,250 Total land, buildings, and equipment. $41,150 $47,490 Liabilities and Stockholders' Equity $41,450 $49,060 Total assets
Transcribed Image Text:Annotatior ACCOU ng Sparkling Cleaner Company reported net income of $7,450 for 2015 but has been showing an overdraft in its bank account in recent months. The manager has contacted you as the auditor for an explanation. The comparative balance sheet was given to you for examination, along with the following information. (a) Equipment was sold for $1,700 , its cost was $3,000 , and its book value was $800 . The gain was reported as Other Revenue. (b) Cash dividends of $4,870 were paid. Sparkling Cleaner Company Comparative Balance Sheet Dec. 31, 2015 Dec. 31, 2014 Assets Current assets: Cash. $ (1,100) $ 3,950 Accounts recelvable. 4,100 2,300 Inventory. 3,250 1,150 Prepaid insurance Total current assets 90 210 3 6,340 $ 7,610 Land, buildings, and equipment: Land $15,200 $15,200 $ 35,000 $ 35,000 Buildings. Less: Accumulated depreciation (16,500) 18,500 (15,000) 20,000 Equipment. 5 28,350 $ 24,150 Less: Accumulated depreciation... (20,900) 7,450 (17,900) 6,250 Total land, buildings, and equipment. $41,150 $47,490 Liabilities and Stockholders' Equity $41,450 $49,060 Total assets
Latior Dec. 31, 2015 Dec 31, 2014 Assets Current assets: Cash. $ (1,100) $ 3,950 Accounts recelvable. 4,100 2,300 Inventory. 3,250 1,150 Prepaid insurance Total current assets. 90 210 Š 6,340 5 7,610 Land, buildings, and equipment: Land ... Buildings . Less: Accumulated depreciation... $15,200 $15,200 $ 35,000 $ 35,000 (16,500) 18,500 (15,000) 20,000 5 28,350 3 24,150 Equipment ..... Less: Accumulated depreciation... (20,900) 7,450 (17,900) 6,250 Total land, buildings, and equipment. $41,150 $47,490 Liabilities and Stockholders' Equity $41,450 $49,060 Total assets Current liabilities: $ 3,600 $ 2,800 Accounts payable Income taxes payable . Wages payable. Notes payable-current portion. 950 1,850 1,100 2,150 3,000 4,500 Total current liabilities $ 8,650 इ11,300 Long-term liabilities: Notes payable.. Stockholders' equity: Capital stock. Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity. 11,250 14,250 $ 19,500 $ 18,000 8,090 5,510 27,590 23,510 347,490 349,060 ...... Instructions: Prepare a statement of cash flows using the indirect method.
Transcribed Image Text:Latior Dec. 31, 2015 Dec 31, 2014 Assets Current assets: Cash. $ (1,100) $ 3,950 Accounts recelvable. 4,100 2,300 Inventory. 3,250 1,150 Prepaid insurance Total current assets. 90 210 Š 6,340 5 7,610 Land, buildings, and equipment: Land ... Buildings . Less: Accumulated depreciation... $15,200 $15,200 $ 35,000 $ 35,000 (16,500) 18,500 (15,000) 20,000 5 28,350 3 24,150 Equipment ..... Less: Accumulated depreciation... (20,900) 7,450 (17,900) 6,250 Total land, buildings, and equipment. $41,150 $47,490 Liabilities and Stockholders' Equity $41,450 $49,060 Total assets Current liabilities: $ 3,600 $ 2,800 Accounts payable Income taxes payable . Wages payable. Notes payable-current portion. 950 1,850 1,100 2,150 3,000 4,500 Total current liabilities $ 8,650 इ11,300 Long-term liabilities: Notes payable.. Stockholders' equity: Capital stock. Retained earnings. Total stockholders' equity Total liabilities and stockholders' equity. 11,250 14,250 $ 19,500 $ 18,000 8,090 5,510 27,590 23,510 347,490 349,060 ...... Instructions: Prepare a statement of cash flows using the indirect method.
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