Current Attempt in Progress The comparative balance sheets for the A1 Beauty Supply Corporation is presented below: A1 BEAUTY SUPPLY CORPORATION Comparative Balance Sheets Assets 2025 2024 Cash Accounts receivable (net) Prepaid insurance $37,000 $31,000 80,000 60,000 22,000 17,000 Land 18,000 40,000 Equipment Accumulated depreciation-equipment Total assets 70,000 60,000 (20,000) (13,000) $207,000 $195,000 Liabilities and Stockholders' Equity Accounts payable $12,000 $6,000 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 28,000 55,000 Total liabilities and stockholder's equity $207,000 $195,000 Additional information: 1 Net loss for 2025 is $12,000. Net sales for 2025 are $250,000. 2. Cash dividends of $15,000 were declared and paid in 2025. 3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5. $12,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2025 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). Do not leave any answer field blank. enter O for amounts.) A1 BEAUTY SUPPLY CORPORATION Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to $ > $ $
Current Attempt in Progress The comparative balance sheets for the A1 Beauty Supply Corporation is presented below: A1 BEAUTY SUPPLY CORPORATION Comparative Balance Sheets Assets 2025 2024 Cash Accounts receivable (net) Prepaid insurance $37,000 $31,000 80,000 60,000 22,000 17,000 Land 18,000 40,000 Equipment Accumulated depreciation-equipment Total assets 70,000 60,000 (20,000) (13,000) $207,000 $195,000 Liabilities and Stockholders' Equity Accounts payable $12,000 $6,000 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 28,000 55,000 Total liabilities and stockholder's equity $207,000 $195,000 Additional information: 1 Net loss for 2025 is $12,000. Net sales for 2025 are $250,000. 2. Cash dividends of $15,000 were declared and paid in 2025. 3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5. $12,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2025 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). Do not leave any answer field blank. enter O for amounts.) A1 BEAUTY SUPPLY CORPORATION Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to $ > $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
The comparative balance sheets for the A1 Beauty Supply Corporation is presented below:
A1 BEAUTY SUPPLY CORPORATION
Comparative Balance Sheets
Assets
2025
2024
Cash
Accounts receivable (net)
Prepaid insurance
$37,000
$31,000
80,000
60,000
22,000
17,000
Land
18,000
40,000
Equipment
Accumulated depreciation-equipment
Total assets
70,000
60,000
(20,000)
(13,000)
$207,000
$195,000
Liabilities and Stockholders' Equity
Accounts payable
$12,000
$6,000
Bonds payable
27,000
19,000
Common stock
140,000
115,000
Retained earnings
28,000
55,000
Total liabilities and stockholder's equity
$207,000
$195,000
Additional information:
1
Net loss for 2025 is $12,000. Net sales for 2025 are $250,000.
2.
Cash dividends of $15,000 were declared and paid in 2025.
3.
Land was sold for cash at a loss of $2,000. This was the only land transaction during the year.
4.
Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5.
$12,000 of bonds were retired during the year at carrying (book) value.
6.
Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000.
Prepare a statement of cash flows for the year ended December 31, 2025 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). Do not leave any answer field blank. enter O for amounts.)
Transcribed Image Text:A1 BEAUTY SUPPLY CORPORATION
Statement of Cash Flows - Indirect Method
Adjustments to reconcile net income to
$
>
$
$
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