Please help solving Example P20-7 from Chapter 20 in the Financial Reporting and Analysis 8th Edition Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 20X1 and 20X0. 20X1 20X0 Increase (Decrease) Assets Current assets: Cash $ 541,000 $ 308,000 $ 233,000 Accounts receivable, net 585,000 495,000 90,000 Inventories 895,000 780,000 115,000 Total current assets 2,021,000 1,583,000 438,000 Land 350,000 250,000 100,000 Plant and equipment 1,060,000 720,000 340,000 Accumulated depreciation (295,000 ) (170,000 ) (125,000 ) Leased equipment under capital lease 158,000 -0- 158,000 Marketable investment securities, at cost -0- 75,000 (75,000 ) Investment in Mason, Inc., at cost 180,000 180,000 -0- Total assets $ 3,474,000 $ 2,638,000 $ 836,000 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 159,000 $ -0- $ 159,000 Accounts payable and accrued expenses 760,000 823,000 (63000 ) Total current liabilities 919,000 823,000 96,000 Note payable, long-term 300,000 -0- 300,000 Liability under capital lease 124,000 -0- 124,000 Bonds payable 500,000 500,000 -0- Unamortized bond premium 16,000 18,000 (2,000 ) Deferred income taxes 60,000 45,000 15,000 Common stock, par-value $20 640,000 600,000 40,000 Additional paid-in capital 304,000 244,000 60,000 Retained earnings 611,000 408,000 203,000 Total liabilities and stockholders’ equity $ 3,474,000 $ 2,638,000 $ 836,000 Additional Information: On January 2, 20X1, Bergen sold all of its marketable investment securities for $95,000 cash. On March 10, 20X1, Bergen paid a cash dividend of $50,000 on its common stock. No other dividends were paid or declared during 20X1. On April 15, 20X1, Bergen issued 2,000 shares of its common stock for land having a fair value of $100,000. On May 25, 20X1, Bergen borrowed $450,000 from an insurance company. The underlying promissory note bears interest at 15% and is payable in three equal annual installments of $150,000. The first payment is due on May 25, 20X2. On June 15, 20X1, Bergen purchased equipment for $392,000 cash. On July 1, 20X1, Bergen sold equipment costing $52,000, with a book value of $28,000, for $33,000 cash. On December 31, 20X1, Bergen leased equipment from Tilden Company for a 10-year period. Equal payments under the lease are $25,000 due on December 31 each year. The first payment was made on December 31, 20X1. The present value at December 31, 20X1, of the 10 lease payments is $158,000. Bergen appropriately recorded the lease as a finance lease. The $25,000 lease payment due on December 31, 20X2, will consist of $9,000 principal and $16,000 interest. Bergen’s net income for 20X1 is $253,000. Bergen owns a 10% interest in the voting common stock of Mason, Inc. Mason reported net income of $120,000 for the year ended December 31, 20X1, and paid a common stock dividend of $55,000 during 20X1. Required: Prepare a cash flow statement for Bergen using the indirect method for 20X1.

Please help solving Example P20-7 from Chapter 20 in the Financial Reporting and Analysis 8th Edition Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 20X1 and 20X0. 20X1 20X0 Increase (Decrease) Assets Current assets: Cash $ 541,000 $ 308,000 $ 233,000 Accounts receivable, net 585,000 495,000 90,000 Inventories 895,000 780,000 115,000 Total current assets 2,021,000 1,583,000 438,000 Land 350,000 250,000 100,000 Plant and equipment 1,060,000 720,000 340,000 Accumulated depreciation (295,000 ) (170,000 ) (125,000 ) Leased equipment under capital lease 158,000 -0- 158,000 Marketable investment securities, at cost -0- 75,000 (75,000 ) Investment in Mason, Inc., at cost 180,000 180,000 -0- Total assets $ 3,474,000 $ 2,638,000 $ 836,000 Liabilities and Stockholders’ Equity Current liabilities: Current portion of long-term debt $ 159,000 $ -0- $ 159,000 Accounts payable and accrued expenses 760,000 823,000 (63000 ) Total current liabilities 919,000 823,000 96,000 Note payable, long-term 300,000 -0- 300,000 Liability under capital lease 124,000 -0- 124,000 Bonds payable 500,000 500,000 -0- Unamortized bond premium 16,000 18,000 (2,000 ) Deferred income taxes 60,000 45,000 15,000 Common stock, par-value $20 640,000 600,000 40,000 Additional paid-in capital 304,000 244,000 60,000 Retained earnings 611,000 408,000 203,000 Total liabilities and stockholders’ equity $ 3,474,000 $ 2,638,000 $ 836,000 Additional Information: On January 2, 20X1, Bergen sold all of its marketable investment securities for $95,000 cash. On March 10, 20X1, Bergen paid a cash dividend of $50,000 on its common stock. No other dividends were paid or declared during 20X1. On April 15, 20X1, Bergen issued 2,000 shares of its common stock for land having a fair value of $100,000. On May 25, 20X1, Bergen borrowed $450,000 from an insurance company. The underlying promissory note bears interest at 15% and is payable in three equal annual installments of $150,000. The first payment is due on May 25, 20X2. On June 15, 20X1, Bergen purchased equipment for $392,000 cash. On July 1, 20X1, Bergen sold equipment costing $52,000, with a book value of $28,000, for $33,000 cash. On December 31, 20X1, Bergen leased equipment from Tilden Company for a 10-year period. Equal payments under the lease are $25,000 due on December 31 each year. The first payment was made on December 31, 20X1. The present value at December 31, 20X1, of the 10 lease payments is $158,000. Bergen appropriately recorded the lease as a finance lease. The $25,000 lease payment due on December 31, 20X2, will consist of $9,000 principal and $16,000 interest. Bergen’s net income for 20X1 is $253,000. Bergen owns a 10% interest in the voting common stock of Mason, Inc. Mason reported net income of $120,000 for the year ended December 31, 20X1, and paid a common stock dividend of $55,000 during 20X1. Required: Prepare a cash flow statement for Bergen using the indirect method for 20X1.

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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Please help solving Example P20-7 from Chapter 20 in the Financial Reporting and Analysis 8th Edition

Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 20X1 and 20X0.

	20X1		20X0	Increase (Decrease)
Assets
Current assets:
Cash	$	541,000		$	308,000		$	233,000
Accounts receivable, net		585,000			495,000			90,000
Inventories		895,000			780,000			115,000
Total current assets		2,021,000			1,583,000			438,000
Land		350,000			250,000			100,000
Plant and equipment		1,060,000			720,000			340,000
Accumulated depreciation		(295,000	)		(170,000	)		(125,000	)
Leased equipment under capital lease		158,000			-0-			158,000
Marketable investment securities, at cost		-0-			75,000			(75,000	)
Investment in Mason, Inc., at cost		180,000			180,000			-0-
Total assets	$	3,474,000		$	2,638,000		$	836,000
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of long-term debt	$	159,000		$	-0-		$	159,000
Accounts payable and accrued expenses		760,000			823,000			(63000	)
Total current liabilities		919,000			823,000			96,000
Note payable, long-term		300,000			-0-			300,000
Liability under capital lease		124,000			-0-			124,000
Bonds payable		500,000			500,000			-0-
Unamortized bond premium		16,000			18,000			(2,000	)
Deferred income taxes		60,000			45,000			15,000
Common stock, par-value $20		640,000			600,000			40,000
Additional paid-in capital		304,000			244,000			60,000
Retained earnings		611,000			408,000			203,000
Total liabilities and stockholders’ equity	$	3,474,000		$	2,638,000		$	836,000

Additional Information:

On January 2, 20X1, Bergen sold all of its marketable investment securities for $95,000 cash.
On March 10, 20X1, Bergen paid a cash dividend of $50,000 on its common stock. No other dividends were paid or declared during 20X1.
On April 15, 20X1, Bergen issued 2,000 shares of its common stock for land having a fair value of $100,000.
On May 25, 20X1, Bergen borrowed $450,000 from an insurance company. The underlying promissory note bears interest at 15% and is payable in three equal annual installments of $150,000. The first payment is due on May 25, 20X2.
On June 15, 20X1, Bergen purchased equipment for $392,000 cash.
On July 1, 20X1, Bergen sold equipment costing $52,000, with a book value of $28,000, for $33,000 cash.
On December 31, 20X1, Bergen leased equipment from Tilden Company for a 10-year period. Equal payments under the lease are $25,000 due on December 31 each year. The first payment was made on December 31, 20X1. The present value at December 31, 20X1, of the 10 lease payments is $158,000. Bergen appropriately recorded the lease as a finance lease. The $25,000 lease payment due on December 31, 20X2, will consist of $9,000 principal and $16,000 interest.
Bergen’s net income for 20X1 is $253,000.
Bergen owns a 10% interest in the voting common stock of Mason, Inc. Mason reported net income of $120,000 for the year ended December 31, 20X1, and paid a common stock dividend of $55,000 during 20X1.

Required:

Prepare a cash flow statement for Bergen using the indirect method for 20X1.