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
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).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83625f5d-9529-4491-96df-d29a574ffdc2%2Fe8301e57-030c-486c-9cf3-daa0b20c2497%2F4f616my_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83625f5d-9529-4491-96df-d29a574ffdc2%2Fe8301e57-030c-486c-9cf3-daa0b20c2497%2Fkmgijqq_processed.png&w=3840&q=75)
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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