Assets.                 Dec. 31, 20Y9. Dec.31, 20Y8 Cash $155,000 $150,000 Accounts Receivable $450,000 $400,000 Inventories $770,000 $750,000 Investments 0 $100,000 Land $500,000 0 Equipment $1,400,000 $1,200,000 Accumulated Depreciation Equipment ($600,000) ($500,000) Total Assets $2, 675,000 $ 2,100,000   Liabilities/Stockers Liability.                                                            Dec. 31, 20Y9         Dec.31, 20Y8 Accounts Payable $340,000 $300,000 Accrued Expense Payable $45,000 $50,000 Dividends Payable $30,000 $ 25,000 Common Stock $4 par $700,000 $ 600,000 Paid in Capital in excess of par-Common Stock $200,000 $175,000 Retained Earnings $ 1, 360,000 $ 950,000 Total Liabilities & Stockholders Equity $ 2, 675,000. $ 2, 100,000 Additional data obtained from an examination of the accounts in the ledger for 20Y7 are as follows:   The investments were sold for $175,000 cash. Equipment and land were acquired for cash. The common stock was issued for cash. There was a $500,000 credit to retained earnings for net income. There was $90,000 debit to retained earnings for cash dividends declared.   Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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                                  Assets.                 Dec. 31, 20Y9. Dec.31, 20Y8

Cash

$155,000

$150,000

Accounts Receivable

$450,000

$400,000

Inventories

$770,000

$750,000

Investments

0

$100,000

Land

$500,000

0

Equipment

$1,400,000

$1,200,000

Accumulated Depreciation Equipment

($600,000)

($500,000)

Total Assets

$2, 675,000

$ 2,100,000

 

Liabilities/Stockers

Liability.                                                            Dec. 31, 20Y9         Dec.31, 20Y8

Accounts Payable

$340,000

$300,000

Accrued Expense Payable

$45,000

$50,000

Dividends Payable

$30,000

$ 25,000

Common Stock $4 par

$700,000

$ 600,000

Paid in Capital in excess of par-Common Stock

$200,000

$175,000

Retained Earnings

$ 1, 360,000

$ 950,000

Total Liabilities & Stockholders Equity

$ 2, 675,000.

$ 2, 100,000

Additional data obtained from an examination of the accounts in the ledger for 20Y7 are as follows:

 

  1. The investments were sold for $175,000 cash.
  2. Equipment and land were acquired for cash.
  3. The common stock was issued for cash.
  4. There was a $500,000 credit to retained earnings for net income.
  5. There was $90,000 debit to retained earnings for cash dividends declared.

 

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

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