Cash Accounts receivable. Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Credits by: $ 116,500 170,600 100,000 293,000 Plant and equipment Accumulated depreciation. 5,800 123,000 $ 808,900 Debits by: $ 83,400 4,800 113,000 Beginning $ 2,906,000 $ 980,500 65,100 49,200 9,900 407,000 The following additional information is available about last year's activities: 76,500 $ 808,900 a. Net income for the year was $___?___. b. The company sold equipment during the year for $35,500. The equipment originally cost $160,300 and it had $126,000 in accumulated depreciation at the time of sale. c. Cash dividends of $10,000 were declared and paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: Ending $ 3,199,000 $ 1,045,600 e. The balance in the Cash account at the beginning of the year was $109,800; the balance at the end of the year was $___?____. f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
Cash Accounts receivable. Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Credits by: $ 116,500 170,600 100,000 293,000 Plant and equipment Accumulated depreciation. 5,800 123,000 $ 808,900 Debits by: $ 83,400 4,800 113,000 Beginning $ 2,906,000 $ 980,500 65,100 49,200 9,900 407,000 The following additional information is available about last year's activities: 76,500 $ 808,900 a. Net income for the year was $___?___. b. The company sold equipment during the year for $35,500. The equipment originally cost $160,300 and it had $126,000 in accumulated depreciation at the time of sale. c. Cash dividends of $10,000 were declared and paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: Ending $ 3,199,000 $ 1,045,600 e. The balance in the Cash account at the beginning of the year was $109,800; the balance at the end of the year was $___?____. f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cash
Accounts receivable
Inventory
Prepaid expenses
Long-term loans to subsidiaries
Long-term investments
Plant and equipment
Accumulated depreciation
Accounts payable
Accrued liabilities
Income taxes payable
Bonds payable
Common stock
Retained earnings
Credits by:
$ 116,500
170,600
100,000
293,000
Plant and equipment
Accumulated depreciation
5,800
123,000
$ 808,900
Debits by:
$ 83,400
4,800
113,000
Beginning
$ 2,906,000
$ 980,500
65,100
49, 200
9,900
407,000
The following additional information is available about last year's activities:
76,500
$ 808,900
a. Net income for the year was $___?_____
b. The company sold equipment during the year for $35,500. The equipment originally cost $160,300 and it had $126,000 in
accumulated depreciation at the time of sale.
c. Cash dividends of $10,000 were declared and paid during the year.
d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:
Ending
$3,199,000
$ 1,045,600
e. The balance in the Cash account at the beginning of the year was $109,800; the balance at the end of the year was $___?___.
f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.
Required:
Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative
amounts.)
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