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Prepare a statement of cash flows using the indirect method.

Prepare a statement of cash flows using the indirect method.

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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Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents 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 Retained earnings 1. 2. Additional data related to 2020 are as follows. 3. 4. 5. 6. 7. 8. December 31 2020 $33,800 $13,100 12,100 9,900 8,900 12,000 -0- -0- 44,500 5,100 $107,500 $3,100 2,000 -0- 5,100 -0- 3,000 31,000 43,000 20,300 $107,500 2019 3,000 29,700 19,800 6,200 $90,600 $4,500 4,500 6,100 3,000 4,900 3,900 25,000 33,000 5,700 $90,600 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 $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash.
Transcribed Image Text:Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents 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 Retained earnings 1. 2. Additional data related to 2020 are as follows. 3. 4. 5. 6. 7. 8. December 31 2020 $33,800 $13,100 12,100 9,900 8,900 12,000 -0- -0- 44,500 5,100 $107,500 $3,100 2,000 -0- 5,100 -0- 3,000 31,000 43,000 20,300 $107,500 2019 3,000 29,700 19,800 6,200 $90,600 $4,500 4,500 6,100 3,000 4,900 3,900 25,000 33,000 5,700 $90,600 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 $4,900. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net of $2,000 taxes). Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. Cash was paid for the acquisition of equipment. A long-term note for $16,000 was issued for the acquisition of equipment. Interest of $2,000 and income taxes of $6,500 were paid in cash.
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).) Adjustments to reconcile net income to BONITA CORPORATION Statement of Cash Flows Supplemental disclosures of cash flow information: $ $ $ $ $ $
Transcribed Image Text: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).) Adjustments to reconcile net income to BONITA CORPORATION Statement of Cash Flows Supplemental disclosures of cash flow information: $ $ $ $ $ $
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