Condensed financial data of Concord Company are as follows. Concord Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $93,000 $46,400 Accounts receivable 89,500 56,200 Inventory 122,000 102,000 Investments 84,500 87,400 Equipment 250,000 206,000 Accumulated depreciation—equipment (48,100) (40,900) $590,900 $457,100 Liabilities and Stockholders’ Equity Accounts payable $57,400 $47,200 Accrued expenses payable 12,200 17,400 Bonds payable 103,000 70,100 Common stock 249,000 195,000 Retained earnings 169,300 127,400 $590,900 $457,100 Concord Company Income Statement For the Year Ended December 31, 2022 Sales revenue $298,000 Gain on disposal of plant assets 8,160 306,160 Less: Cost of goods sold $98,800 Operating expenses (excluding depreciation expense) 13,100 Depreciation expense 49,300 Income tax expense 7,400 Interest expense 2,200 170,800 Net income $135,360 Additional information: 1. Equipment costing $91,700 was purchased for cash during the year. 2. Investments were sold at their carrying value. 3. Equipment costing $47,700 was sold for $13,760, resulting in a gain of $8,160. 4. A cash dividend of $93,460 was declared and paid during the year. Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling items directly in the worksheet columns. (Show details of retained earnings and accumulated depreciation, do not net)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Condensed financial data of Concord Company are as follows.

Concord Company Comparative Balance Sheets December 31
Assets	2022	2021
Cash	$93,000		$46,400
Accounts receivable	89,500		56,200
Inventory	122,000		102,000
Investments	84,500		87,400
Equipment	250,000		206,000
Accumulated depreciation—equipment	(48,100)		(40,900)
	$590,900		$457,100

Liabilities and Stockholders’ Equity
Accounts payable	$57,400		$47,200
Accrued expenses payable	12,200		17,400
Bonds payable	103,000		70,100
Common stock	249,000		195,000
Retained earnings	169,300		127,400
	$590,900		$457,100

Concord Company Income Statement For the Year Ended December 31, 2022
Sales revenue		$298,000
Gain on disposal of plant assets		8,160
		306,160

Less:
Cost of goods sold	$98,800
Operating expenses (excluding depreciation expense)	13,100
Depreciation expense	49,300
Income tax expense	7,400
Interest expense	2,200	170,800
Net income		$135,360

Additional information:

1.		Equipment costing $91,700 was purchased for cash during the year.
2.		Investments were sold at their carrying value.
3.		Equipment costing $47,700 was sold for $13,760, resulting in a gain of $8,160.
4.		A cash dividend of $93,460 was declared and paid during the year.

Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling items directly in the worksheet columns. (Show details of retained earnings and accumulated depreciation, do not net)

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