AY PARK CORPORATION Comparative Balance Sheet Dec. 31, 2021 Dec. 31, 2020 Assets Cash.................................................................... $ 23,000.................................................................. $ 12,000 Accounts receivable.............................................. 18,000.......................................................... 14,000 Prepaid expenses................................................. 6,000............................................................ 9,000 Inventory.............................................................. 27,000.......................................................... 18,000 Long-term investment in bonds............................. -0- .................................................................... 18,000 Equipment............................................................ 60,000.......................................................... 30,000 Accumulated depreciation—equipment.................. (18,000)............................................................... (14,000) Total assets.................................................. $ 116,000................................................................ $ 87,000 Liabilities and Shareholders' Equity Accounts payable................................................. $ 21,000.................................................................. $ 9,000 Bonds payable...................................................... 37,000.......................................................... 45,000 Common shares................................................... 40,000.......................................................... 23,000 Retained earnings................................................ 18,000.................................................................. 10,000 Total liabilities and shareholders' equity......... $ 116,000................................................................ $ 87,000 Additional information: 1. Profit for the year ending December 31, 2021 was $ 20,000. 2. Cash dividends of $ 12,000 were declared and paid during the year. 3. Long-term investments in bonds that had an amortized cost of $ 18,000 were sold for $ 16,000. Required: Prepare a cash flow statement for the year ended December 31, 2021, using the indirect method.
AY PARK CORPORATION
Comparative
Dec. 31, 2021 Dec. 31, 2020
Assets
Cash.................................................................... $ 23,000.................................................................. $ 12,000
Prepaid expenses................................................. 6,000............................................................ 9,000
Inventory.............................................................. 27,000.......................................................... 18,000
Long-term investment in bonds............................. -0- .................................................................... 18,000
Equipment............................................................ 60,000.......................................................... 30,000
Total assets.................................................. $ 116,000................................................................ $ 87,000
Liabilities and Shareholders' Equity
Accounts payable................................................. $ 21,000.................................................................. $ 9,000
Bonds payable...................................................... 37,000.......................................................... 45,000
Common shares................................................... 40,000.......................................................... 23,000
Total liabilities and shareholders' equity......... $ 116,000................................................................ $ 87,000
Additional information:
1. Profit for the year ending December 31, 2021 was $ 20,000.
2. Cash dividends of $ 12,000 were declared and paid during the year.
3. Long-term investments in bonds that had an amortized cost of $ 18,000 were sold for $ 16,000.
Required:
Prepare a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
