(b) The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 2019 Tk. 71,000 Assets 2018 Cash Tk.45,000 62,000 142,000 21,000 130,000 Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building 44,000 151,450 15,280 105,000 228,000 (45,000) 200,000 155,000 (35,000) 200,000 (40,000) Tk. 709,730 Tk.680,000 (60,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Tk. 47,730 Tk. 40,000 260,000 200,000 202,000 Tk. 709,730 Tk. 680,000 300,000 160,000 180,000 Total Additional information: 1. Operating expenses include 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 indirect method. 04
(b) The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 2019 Tk. 71,000 Assets 2018 Cash Tk.45,000 62,000 142,000 21,000 130,000 Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building 44,000 151,450 15,280 105,000 228,000 (45,000) 200,000 155,000 (35,000) 200,000 (40,000) Tk. 709,730 Tk.680,000 (60,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Tk. 47,730 Tk. 40,000 260,000 200,000 202,000 Tk. 709,730 Tk. 680,000 300,000 160,000 180,000 Total Additional information: 1. Operating expenses include 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 indirect method. 04
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education