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Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) SHEFFIELD CORPORATION Statement of Cash Flows

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) SHEFFIELD CORPORATION Statement of Cash Flows

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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2. Additional data related to 2020 are as follows. 3. 4. 5. Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock 6. Retained earnings 7. $3,100 2,000 -0- 5,000 Adjustments to reconcile net income to -0- 3,000 SHEFFIELD CORPORATION Statement of Cash Flows 31,000 43,000 20,800 $107,900 Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,100 and income taxes of $6,500 were paid in cash. 1. Equipment that had cost $11,100 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5,000. $4,400 4,500 5,900 3,000 5,000 $ 3,900 25,000 33,000 On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). 6,500 Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. $91,200 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Transcribed Image Text:2. Additional data related to 2020 are as follows. 3. 4. 5. Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock 6. Retained earnings 7. $3,100 2,000 -0- 5,000 Adjustments to reconcile net income to -0- 3,000 SHEFFIELD CORPORATION Statement of Cash Flows 31,000 43,000 20,800 $107,900 Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,100 and income taxes of $6,500 were paid in cash. 1. Equipment that had cost $11,100 and was 40% depreciated at time of disposal was sold for $2,500. $10,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5,000. $4,400 4,500 5,900 3,000 5,000 $ 3,900 25,000 33,000 On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $29,900 (net of $2,000 taxes). 6,500 Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. $91,200 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)
The comparative balance sheets for Sheffield Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2020 $33,600 12,400 12,100 -0- -0- 44,800 5,000 2019 $13,200 10,000 9,000 3,000 29,700 20,000 6,300 $107,900 $91,200
Transcribed Image Text:The comparative balance sheets for Sheffield Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2020 $33,600 12,400 12,100 -0- -0- 44,800 5,000 2019 $13,200 10,000 9,000 3,000 29,700 20,000 6,300 $107,900 $91,200
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