Boscia Corporation's balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents......................... $ 44 $ 38 Accounts receivable .................................. 82 69 Inventory ................................................... 71 69 Plant and equipment .................................. 537 500 Accumulated depreciation......................... ( 240) ( 201) Total assets................................................ $494 $475 Liabilities and stockholders’ equity: Accounts payable ...................................... $ 70 $ 60 Wages payable........................................... 24 21 Taxes payable ............................................ 19 22 Bonds payable ........................................... 226 300 Deferred taxes............................................ 19 18 Common stock........................................... 22 20 Retained earnings...................................... 114 34 Total liabilities and stockholders’ equity .. $494 $475 The net income for the year was $108. Cash dividends were $28. Required: Prepare a statement of cash flows in good form using the indirect method.
Transcribed Image Text:### Boscia Corporation: Comparative Balance Sheet
#### Assets:
- **Ending Balance** / **Beginning Balance**
- Cash and cash equivalents: $44 / $38
- Accounts receivable: $82 / $69
- Inventory: $71 / $69
- Plant and equipment: $537 / $500
- Accumulated depreciation: ($240) / ($201)
- **Total assets**: $494 / $475
#### Liabilities and Stockholders’ Equity:
- **Ending Balance** / **Beginning Balance**
- Accounts payable: $70 / $60
- Wages payable: $24 / $21
- Taxes payable: $19 / $22
- Bonds payable: $226 / $300
- Deferred taxes: $19 / $18
- Common stock: $22 / $20
- Retained earnings: $114 / $34
- **Total liabilities and stockholders’ equity**: $494 / $475
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**Additional Information:**
- Net income for the year: $108
- Cash dividends: $28
#### Requirement:
Prepare a statement of cash flows in good form using the indirect method.
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
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