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Instructions Prepare a statement of cash flows (indirect method). Ignore tax effects.

Instructions Prepare a statement of cash flows (indirect method). Ignore tax effects.

FINANCIAL ACCOUNTING
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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The net **changes** in the balance sheet accounts of ESPN, Inc. for the year 2021 are shown below: | Account | Debit | Credit | |------------------------------------|-----------|-----------| | Cash | $100,600 | | | Accounts receivable | | $64,000 | | Allowance for doubtful accounts | | 10,000 | | Inventory | 197,200 | | | Prepaid expenses | 20,000 | | | Long-term investments | | 144,000 | | Land | 405,000 | | | Buildings | 650,000 | | | Machinery | 100,000 | | | Equipment | 28,000 | | | Accumulated depreciation: | | | |    Buildings | | 24,000 | |    Machinery | | 20,000 | |    Equipment | | 12,000 | | Accounts payable | | 183,200 | | Accrued liabilities | | 72,000 | | Dividends payable | | 128,000 | | Premium on bonds | 36,000 | | | Bonds payable | 900,000 | | | Preferred stock ($50 par) | | 70,000 | | Common stock ($10 par) | | 156,000 | | Additional paid-in capital—common | | 223,200 | | Retained earnings | | 67,200 | | **Total** | $1,805,200| $1,805,200| **Additional Information:** 1. **Net income for 2021:** $160,000 2. **Dividends:** - Cash dividends of $128,000 were declared on December 15, 2021, payable on January 15, 2022. - A 5% stock dividend was issued on March 31, 2021, when the market value was $22.00 per share. 3. **Long-term investments sold:** Sold for $140,
Transcribed Image Text:The net **changes** in the balance sheet accounts of ESPN, Inc. for the year 2021 are shown below: | Account | Debit | Credit | |------------------------------------|-----------|-----------| | Cash | $100,600 | | | Accounts receivable | | $64,000 | | Allowance for doubtful accounts | | 10,000 | | Inventory | 197,200 | | | Prepaid expenses | 20,000 | | | Long-term investments | | 144,000 | | Land | 405,000 | | | Buildings | 650,000 | | | Machinery | 100,000 | | | Equipment | 28,000 | | | Accumulated depreciation: | | | |    Buildings | | 24,000 | |    Machinery | | 20,000 | |    Equipment | | 12,000 | | Accounts payable | | 183,200 | | Accrued liabilities | | 72,000 | | Dividends payable | | 128,000 | | Premium on bonds | 36,000 | | | Bonds payable | 900,000 | | | Preferred stock ($50 par) | | 70,000 | | Common stock ($10 par) | | 156,000 | | Additional paid-in capital—common | | 223,200 | | Retained earnings | | 67,200 | | **Total** | $1,805,200| $1,805,200| **Additional Information:** 1. **Net income for 2021:** $160,000 2. **Dividends:** - Cash dividends of $128,000 were declared on December 15, 2021, payable on January 15, 2022. - A 5% stock dividend was issued on March 31, 2021, when the market value was $22.00 per share. 3. **Long-term investments sold:** Sold for $140,
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