Homework Help is Here – Start Your Trial Now!
Business
Finance
prepare statement of cash flow for indirect only

prepare statement of cash flow for indirect only

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

prepare statement of cash flow for indirect only

**VNN, Inc.** **Comparative Balance Sheet** | | 12/31/22 | 12/31/21 | |---|----------|----------| | **Assets** | | Cash | $96,000 | $38,000 | | Accounts receivable | $18,000 | $22,000 | | Inventory | $10,000 | $12,000 | | Prepaid expenses | $8,000 | $5,000 | | Long-term investments | $0 | $23,000 | | Equipment | $65,000 | $41,000 | | Accumulated depreciation - equipment | ($19,000) | ($14,000) | | **Total assets** | $178,000 | $127,000 | | **Liabilities and Stockholders Equity** | | Accounts payable | $21,000 | $37,000 | | Bonds payable | $45,000 | $40,000 | | Common stock | $35,000 | $23,000 | | Retained earnings | $77,000 | $27,000 | | **Total liabilities and stockholders equity** | $178,000 | $127,000 | **Additional Information:** 1. Net income was $71,000 and $21,000 cash dividends were declared and paid during 2022. 2. Long-term investments that had a cost of $23,000 were sold for $35,000, a gain of $12,000. 3. There were purchases of equipment, but no sales or disposals. --- In this comparative balance sheet, VNN, Inc.'s financial position is reported on two dates: December 31, 2022, and December 31, 2021. This comparison helps to provide insights into changes in the company's financial health over the one-year period. Key metrics to observe include: - Increase in cash and equipment over the year. - Reduction in accounts payable suggesting outgoing payments towards creditors. - Increase in common stock and retained earnings indicating growth in shareholders' equity and profits retained by the company. - Notable transactions and net income which provide context to the figures shown in the balance sheet, with specific mention of dividends paid, investment gains, and equipment purchases. This summary provides an overall snapshot of how assets, liabilities, and stockholders' equity have evolved over the year, reflecting the operational and financial activities of VNN, Inc.
Transcribed Image Text:**VNN, Inc.** **Comparative Balance Sheet** | | 12/31/22 | 12/31/21 | |---|----------|----------| | **Assets** | | Cash | $96,000 | $38,000 | | Accounts receivable | $18,000 | $22,000 | | Inventory | $10,000 | $12,000 | | Prepaid expenses | $8,000 | $5,000 | | Long-term investments | $0 | $23,000 | | Equipment | $65,000 | $41,000 | | Accumulated depreciation - equipment | ($19,000) | ($14,000) | | **Total assets** | $178,000 | $127,000 | | **Liabilities and Stockholders Equity** | | Accounts payable | $21,000 | $37,000 | | Bonds payable | $45,000 | $40,000 | | Common stock | $35,000 | $23,000 | | Retained earnings | $77,000 | $27,000 | | **Total liabilities and stockholders equity** | $178,000 | $127,000 | **Additional Information:** 1. Net income was $71,000 and $21,000 cash dividends were declared and paid during 2022. 2. Long-term investments that had a cost of $23,000 were sold for $35,000, a gain of $12,000. 3. There were purchases of equipment, but no sales or disposals. --- In this comparative balance sheet, VNN, Inc.'s financial position is reported on two dates: December 31, 2022, and December 31, 2021. This comparison helps to provide insights into changes in the company's financial health over the one-year period. Key metrics to observe include: - Increase in cash and equipment over the year. - Reduction in accounts payable suggesting outgoing payments towards creditors. - Increase in common stock and retained earnings indicating growth in shareholders' equity and profits retained by the company. - Notable transactions and net income which provide context to the figures shown in the balance sheet, with specific mention of dividends paid, investment gains, and equipment purchases. This summary provides an overall snapshot of how assets, liabilities, and stockholders' equity have evolved over the year, reflecting the operational and financial activities of VNN, Inc.
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS