Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method. Assets Cash Accounts receivable Inventories. Land Equipment Accumulated depreciation Total MIGITSU COMPANY Comparative Balance Sheets December 31 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total Additional information: 2020 $72,000 87,000 171,000 71,000 260,000 (67,000) $594,000 $41,000 148,000 217,000 188,000 $594,000 2019 $20,000 78,000 190,000 99,000 201,000 (29,000) $559,000 $43,000 209,000 173,000 134,000 $559,000 1. Net income for 2020 was $88,000. 2. Cash dividends of $34,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $44,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $38,000 during 2020; land was sold at cost.
Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method. Assets Cash Accounts receivable Inventories. Land Equipment Accumulated depreciation Total MIGITSU COMPANY Comparative Balance Sheets December 31 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total Additional information: 2020 $72,000 87,000 171,000 71,000 260,000 (67,000) $594,000 $41,000 148,000 217,000 188,000 $594,000 2019 $20,000 78,000 190,000 99,000 201,000 (29,000) $559,000 $43,000 209,000 173,000 134,000 $559,000 1. Net income for 2020 was $88,000. 2. Cash dividends of $34,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $44,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $38,000 during 2020; land was sold at cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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 alt="Adjustments to reconcile net income to
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MIGITSU COMPANY
Statement of Cash Flows
$
$
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Transcribed Image Text:Adjustments to reconcile net income to
Save for Later
MIGITSU COMPANY
Statement of Cash Flows
$
$
Attempts: 0 of 2 used
Submit Answer

Transcribed Image Text:Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method.
Assets
Cash
Accounts receivable
Inventories
Land
Equipment
Accumulated depreciation
Total
MIGITSU COMPANY
Comparative Balance Sheets
December 31
Liabilities and Stockholders' Equity
Accounts payable
Bonds payable
Common stock ($1 par)
Retained earnings
Total
Additional information:
2020
$72,000
87,000
171,000
71,000
260,000
(67,000 )
$594,000
$41,000
148,000
217,000
188,000
$594,000
2019
$20,000
78,000
190,000
99,000
201,000
(29,000 )
$559,000
$43,000
209,000
173,000
134,000
$559,000
1. Net income for 2020 was $88,000.
2. Cash dividends of $34,000 were declared and paid.
3. Bonds payable amounting to $61,000 were redeemed for cash $61,000.
4. Common stock was issued for $44,000 cash.
5. Equipment cost $50,000 and had a book value of $30,000 was sold for $38,000 during 2020; land
was sold at cost.
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