PR 16-1A Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $ 155,000 $ 150,000 Accounts receivable (net) . 450,000 400,000 Inventories 770,000 750,000 Investments 100,000 Land ... 500,000 Equipment... 1,400,000 1,200,000 Accumulated depreciation-equipment . (600,000) $2,675,000 (500,000) $2,100,000 Total assets.. Liabilities and Stockholders' Equity $ 340,000 $ 300,000 Accounts payable ..... Accrued expenses payable.. 45,000 50,000 Dividends payable...... Common stock, $4 par. 30,000 25,000 700,000 600,000 Paid-in capital: Excess of issue price over par-common stock... Retained earnings..... 200,000 175,000 1,360,000 $2,675,000 950,000 $2,100,000 Total liabilities and stockholders' equity.. Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $500,000 credit to Retained Earnings for net income. f. There was a $90,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
PR 16-1A Statement of cash flows-indirect method OBJ. 2 The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Y3 Dec. 31, 20Y2 Assets Cash $ 155,000 $ 150,000 Accounts receivable (net) . 450,000 400,000 Inventories 770,000 750,000 Investments 100,000 Land ... 500,000 Equipment... 1,400,000 1,200,000 Accumulated depreciation-equipment . (600,000) $2,675,000 (500,000) $2,100,000 Total assets.. Liabilities and Stockholders' Equity $ 340,000 $ 300,000 Accounts payable ..... Accrued expenses payable.. 45,000 50,000 Dividends payable...... Common stock, $4 par. 30,000 25,000 700,000 600,000 Paid-in capital: Excess of issue price over par-common stock... Retained earnings..... 200,000 175,000 1,360,000 $2,675,000 950,000 $2,100,000 Total liabilities and stockholders' equity.. Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $175,000 cash. b. Equipment and land were acquired for cash. c. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $500,000 credit to Retained Earnings for net income. f. There was a $90,000 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PR 16-1A Statement of cash flows-indirect method
OBJ. 2
The comparative balance sheet of Navaria Inc. for December 31, 20Y3 and 20Y2, is shown
as follows:
Dec. 31, 20Y3
Dec. 31, 20Y2
Assets
Cash
$ 155,000
$ 150,000
Accounts receivable (net) .
450,000
400,000
Inventories
770,000
750,000
Investments
100,000
Land ...
500,000
Equipment...
1,400,000
1,200,000
Accumulated depreciation-equipment .
(600,000)
$2,675,000
(500,000)
$2,100,000
Total assets..
Liabilities and Stockholders' Equity
$ 340,000
$ 300,000
Accounts payable .....
Accrued expenses payable..
45,000
50,000
Dividends payable......
Common stock, $4 par.
30,000
25,000
700,000
600,000
Paid-in capital: Excess of issue price over par-common stock...
Retained earnings.....
200,000
175,000
1,360,000
$2,675,000
950,000
$2,100,000
Total liabilities and stockholders' equity..
Additional data obtained from an examination of the accounts in the ledger for 20Y3
are as follows:
a. The investments were sold for $175,000 cash.
b. Equipment and land were acquired for cash.
c. There were no disposals of equipment during the year.
d. The common stock was issued for cash.
e. There was a $500,000 credit to Retained Earnings for net income.
f. There was a $90,000 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows
from operating activities.
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