P23-9 (LO2,4) (Indirect SCF) Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. December 31 2017 2016 $ 38,500 $13,000 10,000 Cash Accounts receivable Inventory Equity investments Buildings Equipment Copyrights 12,250 12,000 -0- 10,000 3,000 29,750 20,000 -0- 40,000 5,000 5,250 Totals s107,750 $91,000 Allowance for doubtful accounts $ 3,000 $ 4,500 Accumulated depreciation-equipment Accumulated depreciation-buildings Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock 2,000 4,500 -0- 6,000 5,000 4,000 -0- 5,000 3,000 4,000 36,000 38,000 20,750 25,000 33,000 Retained earnings 5,000 $91,000 $107,750 Additional data related to 2017 are as follows. 1. Equipment that had cost $11,000 and was 30% depreciated at time of disposal was sold for $2,500. 2. $5,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $33,000 (net of $4,000 taxes). 5. Equity investments (ownership is less than 20% of total shares) were sold at $1,500 above their cost. No unrealized gains or losses were recorded in 2017. 6. Cash and long-term note for $16,000 were given for the acquisition of equipment. 7. Interest of $2,000 and income taxes of $5,000 were paid in cash.
P23-9 (LO2,4) (Indirect SCF) Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. December 31 2017 2016 $ 38,500 $13,000 10,000 Cash Accounts receivable Inventory Equity investments Buildings Equipment Copyrights 12,250 12,000 -0- 10,000 3,000 29,750 20,000 -0- 40,000 5,000 5,250 Totals s107,750 $91,000 Allowance for doubtful accounts $ 3,000 $ 4,500 Accumulated depreciation-equipment Accumulated depreciation-buildings Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock 2,000 4,500 -0- 6,000 5,000 4,000 -0- 5,000 3,000 4,000 36,000 38,000 20,750 25,000 33,000 Retained earnings 5,000 $91,000 $107,750 Additional data related to 2017 are as follows. 1. Equipment that had cost $11,000 and was 30% depreciated at time of disposal was sold for $2,500. 2. $5,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $33,000 (net of $4,000 taxes). 5. Equity investments (ownership is less than 20% of total shares) were sold at $1,500 above their cost. No unrealized gains or losses were recorded in 2017. 6. Cash and long-term note for $16,000 were given for the acquisition of equipment. 7. Interest of $2,000 and income taxes of $5,000 were paid in cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A) Use the indirect method to analyze the above information and prepare a statement of
Transcribed Image Text:P23-9 (LO2,4) (Indirect SCF) Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller
has provided the following information.
December 31
2017
2016
$ 38,500
$13,000
10,000
Cash
Accounts receivable
Inventory
Equity investments
Buildings
Equipment
Copyrights
12,250
12,000
-0-
10,000
3,000
29,750
20,000
-0-
40,000
5,000
5,250
Totals
s107,750
$91,000
Allowance for doubtful accounts
$ 3,000
$ 4,500
Accumulated depreciation-equipment
Accumulated depreciation-buildings
Accounts payable
Dividends payable
Notes payable, short-term (nontrade)
Long-term notes payable
Common stock
2,000
4,500
-0-
6,000
5,000
4,000
-0-
5,000
3,000
4,000
36,000
38,000
20,750
25,000
33,000
Retained earnings
5,000
$91,000
$107,750
Additional data related to 2017 are as follows.
1. Equipment that had cost $11,000 and was 30% depreciated at time of disposal was sold for $2,500.
2. $5,000 of the long-term note payable was paid by issuing common stock.
3. Cash dividends paid were $5,000.
4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $33,000
(net of $4,000 taxes).
5. Equity investments (ownership is less than 20% of total shares) were sold at $1,500 above their cost. No unrealized gains
or losses were recorded in 2017.
6. Cash and long-term note for $16,000 were given for the acquisition of equipment.
7. Interest of $2,000 and income taxes of $5,000 were paid in cash.
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