(b) The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 Tk. 71,000 44,000 151,450 15,280 105,000 2018 Tk 45,000 Cash Accounts receivable Inventory Prepaid expenses Land 62,000 142,000 21,000 130,000 Equipment Accumulated depreciation equipment Building Accumulated depreciation-building 228,000 155,000 (35,000) 200,000 (40,000) Tk. 709,730 Tk.680,000 (45,000) 200,000 (60,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, Si par Retained earnings Тocal Tk. 47,730 260,000 Tk. 40,000 300,000 160,000 180,000 Tk. 709,730 Tk. 680,000 200,000 202,000 Additional information: 1. Operating expenses inelude depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000, 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31. 2019. using the indireet 04 method.
(b) The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 Tk. 71,000 44,000 151,450 15,280 105,000 2018 Tk 45,000 Cash Accounts receivable Inventory Prepaid expenses Land 62,000 142,000 21,000 130,000 Equipment Accumulated depreciation equipment Building Accumulated depreciation-building 228,000 155,000 (35,000) 200,000 (40,000) Tk. 709,730 Tk.680,000 (45,000) 200,000 (60,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, Si par Retained earnings Тocal Tk. 47,730 260,000 Tk. 40,000 300,000 160,000 180,000 Tk. 709,730 Tk. 680,000 200,000 202,000 Additional information: 1. Operating expenses inelude depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000, 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31. 2019. using the indireet 04 method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:(b) The comparative balance sheets for Ramirez Company as of December 31 are presented:
RAMIREZ COMPANY
Comparative Balance Sheets
December 31
Assets
2019
Tk. 71,000
44,000
151,450
15,280
105,000
2018
Tk 45,000
Cash
Accounts receivable
Inventory
Prepaid expenses
Land
62,000
142,000
21,000
130,000
Equipment
Accumulated depreciation equipment
Building
Accumulated depreciation-building
228,000
155,000
(35,000)
200,000
(40,000)
Tk. 709,730 Tk.680,000
(45,000)
200,000
(60,000)
Total
Liabilities and Stockholders' Equity
Accounts payable
Bonds payable
Common stock, Si par
Retained earnings
Тocal
Tk. 47,730
260,000
Tk. 40,000
300,000
160,000
180,000
Tk. 709,730 Tk. 680,000
200,000
202,000
Additional information:
1. Operating expenses inelude depreciation expense of Tk. 42,000 and charges from prepaid
expenses of Tk. 5,720.
2. Land was sold for cash at book value.
3. Cash dividends of Tk. 15,000 were paid.
4. Net income for 2019 was Tk. 37,000,
5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with
a book value of Tk. 10,000 was sold for Tk. 6,000 cash.
6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common
stock.
Instructions
Prepare a statement of cash flows for the year ended December 31. 2019. using the indireet
04
method.
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