Culver Inc. applies ASPE and had the following statement of financial position at the end of operations for 2019: CULVER INC. Statement of Financial Position December 31, 2019 Cash $50,500 Accounts payable $ 93,000 Accounts receivable 90,000 Long-term debt 85,000 Inventory 82,000 Common shares 100,000 Machinery (net) 125,000 Retained earnings 89,500 Trademarks 20,000 $367,500 $367,500 During 2020, the following occurred: 1. Jia Inc. sold some of its trademarks. The trademarks had an unlimited useful life and a cost of $10,000. They were sold for proceeds of $19,500. 2. Machinery was purchased in exchange for long-term debt of $40,000. 3. Long-term debt in the amount of $16,000 was retired before maturity by paying $16,000 cash. 4. An additional $11,500 in common shares was issued. 5. Dividends totalling $13,200 were declared and paid to shareholders. Dividends paid are treated as financing activities. 6. Net income for 2020 was $44,000 after allowing for depreciation of $19,000. 7. Machinery with a carrying value of $18,000 was sold at a gain of $7,000. 8. At December 31, 2020, Cash was $67,800; Accounts Receivable was $111,000; Accounts Payable was $83,000 and Inventory increased to $107,000. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
Culver Inc. applies ASPE and had the following statement of financial position at the end of operations for 2019: CULVER INC. Statement of Financial Position December 31, 2019 Cash $50,500 Accounts payable $ 93,000 Accounts receivable 90,000 Long-term debt 85,000 Inventory 82,000 Common shares 100,000 Machinery (net) 125,000 Retained earnings 89,500 Trademarks 20,000 $367,500 $367,500 During 2020, the following occurred: 1. Jia Inc. sold some of its trademarks. The trademarks had an unlimited useful life and a cost of $10,000. They were sold for proceeds of $19,500. 2. Machinery was purchased in exchange for long-term debt of $40,000. 3. Long-term debt in the amount of $16,000 was retired before maturity by paying $16,000 cash. 4. An additional $11,500 in common shares was issued. 5. Dividends totalling $13,200 were declared and paid to shareholders. Dividends paid are treated as financing activities. 6. Net income for 2020 was $44,000 after allowing for depreciation of $19,000. 7. Machinery with a carrying value of $18,000 was sold at a gain of $7,000. 8. At December 31, 2020, Cash was $67,800; Accounts Receivable was $111,000; Accounts Payable was $83,000 and Inventory increased to $107,000. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Comprehensive The following are Farrell Corporations balance sheets as of December 31, 2019, and...
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Culver Inc. applies ASPE and had the following
CULVER INC. Statement of Financial Position December 31, 2019 |
|||||||
Cash | $50,500 | Accounts payable | $ 93,000 | ||||
Accounts receivable | 90,000 | Long-term debt | 85,000 | ||||
Inventory | 82,000 | Common shares | 100,000 | ||||
Machinery (net) | 125,000 | 89,500 | |||||
Trademarks | 20,000 | ||||||
$367,500 | $367,500 |
During 2020, the following occurred:
1. | Jia Inc. sold some of its trademarks. The trademarks had an unlimited useful life and a cost of $10,000. They were sold for proceeds of $19,500. | |
2. | Machinery was purchased in exchange for long-term debt of $40,000. | |
3. | Long-term debt in the amount of $16,000 was retired before maturity by paying $16,000 cash. | |
4. | An additional $11,500 in common shares was issued. | |
5. | Dividends totalling $13,200 were declared and paid to shareholders. Dividends paid are treated as financing activities. | |
6. | Net income for 2020 was $44,000 after allowing for |
|
7. | Machinery with a carrying value of $18,000 was sold at a gain of $7,000. | |
8. | At December 31, 2020, Cash was $67,800; Accounts Receivable was $111,000; Accounts Payable was $83,000 and Inventory increased to $107,000. |
Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method.
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