Based on the information given below, prepare the Statement of Cash Flows for Clay Company for the year ended December 31, 2019, using the indirect method. Clay Company Comparative Balance Sheets 31/12/2019 31/12/2018 $ 33,250 $ 20,000 Cash Accounts receivable 80,000 58,000 Inventory 210,000 250,000 Prepaid expenses 9,000 7,000 Plant assets 600,000 502,000 Accumulated depreciation (150,000) (125,000) Total assets $ 782,250 $ 712,000 Accounts payable $ 123,000 $ 115,000 Salaries payable 47,250 72,000 Interest payable 27,000 25,000 Bonds payable 70,000 100,000 Common stock, $ 10 par 370,000 280,000 Retained earnings 145,000 120,000 Tot. liabilities and stockholders'eg. $ 782,250 $ 712,000 Additional information about transactions that occured during 2019: 1. Plant assets costing $98,000 were purchased by paying $48,000 in cash and issuing 5,00 shares of stock. 2. Income taxes of $43,000 were paid in full. 3. In order to supplement cash, Clay Company issued 4,000 shares of common stock at par value. 1. Cash dividends of $105,000 were declared and paid at the end of the fiscal year.
Based on the information given below, prepare the Statement of Cash Flows for Clay Company for the year ended December 31, 2019, using the indirect method. Clay Company Comparative Balance Sheets 31/12/2019 31/12/2018 $ 33,250 $ 20,000 Cash Accounts receivable 80,000 58,000 Inventory 210,000 250,000 Prepaid expenses 9,000 7,000 Plant assets 600,000 502,000 Accumulated depreciation (150,000) (125,000) Total assets $ 782,250 $ 712,000 Accounts payable $ 123,000 $ 115,000 Salaries payable 47,250 72,000 Interest payable 27,000 25,000 Bonds payable 70,000 100,000 Common stock, $ 10 par 370,000 280,000 Retained earnings 145,000 120,000 Tot. liabilities and stockholders'eg. $ 782,250 $ 712,000 Additional information about transactions that occured during 2019: 1. Plant assets costing $98,000 were purchased by paying $48,000 in cash and issuing 5,00 shares of stock. 2. Income taxes of $43,000 were paid in full. 3. In order to supplement cash, Clay Company issued 4,000 shares of common stock at par value. 1. Cash dividends of $105,000 were declared and paid at the end of the fiscal year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Based on the information given below, prepare the Statement of
Additional information about transactions that occured during 2019:
- Plant assets costing $98,000 were purchased by paying $48,000 in cash and issuing 5,000 shares of stock.
- Income taxes of $43,000 were paid in full.
- In order to supplement cash, Clay Company issued 4,000 shares of common stock at par value.
- Cash dividends of $105,000 were declared and paid at the end of the fiscal year.
Transcribed Image Text:Based on the information given below, prepare the Statement of Cash Flows for Clay
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Company for the year ended December 31, 2019, using the indirect method.
Clay Company
Comparative Balance Sheets
31/12/2019
31/12/2018
$ 33,250
$
$ 20,000
Cash
Accounts receivable
80,000
58,000
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Inventory
210,000
250,000
Prepaid expenses
9,000
7,000
Plant assets
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600,000
502,000
Accumulated depreciation
(150,000)
(125,000)
Total assets
$ 782,250
$ 712,000
Accounts payable
$ 123,000
$ 115,000
Salaries payable
47,250
72,000
Interest payable
27,000
25,000
Bonds payable
70,000
100,000
Common stock, $ 10 par
370,000
280,000
Retained earnings
145,000
120,000
Tot. liabilities and stockholders'eg.
$ 782,250
$ 712,000
Additional information about transactions that occured during 2019:
1. Plant assets costing $98,000 were purchased by paying $48,000 in cash and issuing 5,000
shares of stock.
2. Income taxes of $43,000 were paid in full.
3. In order to supplement cash, Clay Company issued 4,000 shares of common stock at par
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value.
4. Cash dividends of $105,000 were declared and paid at the end of the fiscal year.
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