Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 242,400 $ 145,200 Accounts receivable 263,400 114,000 Inventory 337,500 308,550 Prepaid expenses 85,200 78,000 Long-term investments 414,000 327,000 Plant assets 855,000 727,500 Accumulated depreciation (150,000 ) (156,000 ) Total $2,047,500 $1,544,250 Liabilities and Stockholders' Equity Accounts payable $ 306,000 $ 201,900 Accrued expenses payable 49,500 63,000 Bonds payable 330,000 438,000 Common stock 660,000 525,000 Retained earnings 702,000 316,350 Total $2,047,500 $1,544,250 Shamrock, Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue $1,165,380 Less: Cost of goods sold $406,380 Operating expenses, excluding depreciation 37,230 Depreciation expense 139,500 Income tax expense 81,840 Interest expense 14,190 Loss on disposal of plant assets 22,500 701,640 Net income $ 463,740 Additional information: 1. New plant assets costing $300,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $78,090 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 242,400 $ 145,200 Accounts receivable 263,400 114,000 Inventory 337,500 308,550 Prepaid expenses 85,200 78,000 Long-term investments 414,000 327,000 Plant assets 855,000 727,500 Accumulated depreciation (150,000 ) (156,000 ) Total $2,047,500 $1,544,250 Liabilities and Stockholders' Equity Accounts payable $ 306,000 $ 201,900 Accrued expenses payable 49,500 63,000 Bonds payable 330,000 438,000 Common stock 660,000 525,000 Retained earnings 702,000 316,350 Total $2,047,500 $1,544,250 Shamrock, Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue $1,165,380 Less: Cost of goods sold $406,380 Operating expenses, excluding depreciation 37,230 Depreciation expense 139,500 Income tax expense 81,840 Interest expense 14,190 Loss on disposal of plant assets 22,500 701,640 Net income $ 463,740 Additional information: 1. New plant assets costing $300,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $78,090 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Condensed financial data of Shamrock, Inc. follow.
Shamrock, Inc.
Comparative Balance Sheets
December 31
Assets
2022
2021
Cash
$ 242,400
$ 145,200
Accounts receivable
263,400
114,000
Inventory
337,500
308,550
Prepaid expenses
85,200
78,000
Long-term investments
414,000
327,000
Plant assets
855,000
727,500
Accumulated depreciation
(150,000 )
(156,000 )
Total
$2,047,500
$1,544,250
Liabilities and Stockholders' Equity
Accounts payable
$ 306,000
$ 201,900
Accrued expenses payable
49,500
63,000
Bonds payable
330,000
438,000
Common stock
660,000
525,000
Retained earnings
702,000
316,350
Total
$2,047,500
$1,544,250
Shamrock, Inc.
Income Statement Data
For the Year Ended December 31, 2022
Sales revenue
$1,165,380
Less:
Cost of goods sold
$406,380
Operating expenses, excluding depreciation
37,230
Depreciation expense
139,500
Income tax expense
81,840
Interest expense
14,190
Loss on disposal of plant assets
22,500
701,640
Net income
$ 463,740
Additional information:
1.
New plant assets costing $300,000 were purchased for cash during the year.
2.
Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash.
3.
Bonds payable matured and were paid off at face value for cash.
4.
A cash dividend of $78,090 was declared and paid during the year.
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or
in parenthesis e.g. (15,000).)
Shamrock, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2022
Cash Flows from Operating Activities
Transcribed Image Text:Shamrock, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2022
Cash Flows from Operating Activities
Net Income
463740
Adjustments to reconcile net income to
Cash Flows from Operating Activities
Depreciation Expense
139500
Loss on Disposal of Plant Assets
22500
Increase in Accounts Receivable
(28950)
Increase in Inventory
(7200)
Increase in Prepaid Expenses
104100
Increase in Accounts Payable
(13500)
Decrease in Accrued Expenses Payable
(149400)
67050
Net Cash Provided by Operating Activities V
530790
Cash Flows from Investing Activities
Sale of Plant Assets
4500
Purchase of Investments
(300000)
Purchase of Plant Assets
(87000)
Net Cash used by Investing Activities
(382500)
Cash Flows from Financing Activities
Redemption of Bonds
135000
Sale of Common Stock
(108000)
Payment of Cash Dividends
(78090)
Net Cash used by Financing Activities
(51090)
Net Increase in Cash
97200
Cash at Beginning of Period
145200
Cash at End of Period
$
242400
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