Problem 21-13 (Algo) Various cash flows [LO21-3, 21-4, 21-5, 21-6, 21-7, 21-8] Following are selected balance sheet accounts of Del Conte Corporation at December 31, 2024 and 2023, and the increases or decreases in each account from 2023 to 2024. Also presented is selected income statement information for the year ended December 31, 2024, and additional information. Selected Balance Sheet Accounts Assets Accounts receivable Property, plant, and equipment Accumulated depreciation Liabilities and Stockholders' Equity Bonds payable Dividends payable Common stock, $1 par Additional paid-in capital Retained earnings 2824 $ 74,000 317,000 (218,000) Depreciation Gain on sale of equipment Net income Additional information: 109,000 18,000 62,000 19,000 144,000 Selected Income Statement Information for the Year Ended December 31, 2824 Sales revenue $ 195,000 73,000 23,000 68,000 2823 $ 44,000 267,000 (187,000) 86,000 13,000 39,000 11,000 111,000 Increase (Decrease) $ 30,000 50,000 31,000 23,000 5,000 23,000 8,000 33,000 a. Accounts receivable relate to sales of merchandise. b. During 2024, equipment costing $80,000 was sold for cash. c. During 2024, bonds payable with a face value of $60,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium. Required: Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2024. The following two responses are required for each item: a. Determine the amount that should be reported in Del Conte's 2024 statement of cash flows. b. Select the category (ie, Operating activity, Investing activity and Financing activity) in which the amount should be reported in the statement of cash flows.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Subject - accounting
![Problem 21-13 (Algo) Various cash flows [LO21-3, 21-4, 21-5, 21-6, 21-7, 21-8]
Following are selected balance sheet accounts of Del Conte Corporation at December 31, 2024 and 2023, and the increases or
decreases in each account from 2023 to 2024. Also presented is selected income statement information for the year ended
December 31, 2024, and additional information.
Selected Balance Sheet Accounts
Assets
Accounts receivable
Property, plant, and equipment
Accumulated depreciation
Liabilities and Stockholders' Equity
Bonds payable
Dividends payable
Common stock, $1 par
Additional paid-in capital
Retained earnings
Depreciation
Gain on sale of equipment
Net income
Additional information:
Selected Income Statement Information for the Year Ended December 31, 2024
Sales revenue
a. Accounts receivable relate to sales of merchandise.
b. During 2024, equipment costing $80,000 was sold for cash.
2824
$ 74,000
317,000
(218,000)
109,000
18,000
62,000
19,000
144,000
1. Cash collections from customers (direct method).
2. Payments for purchase of property, plant, and equipment.
3. Proceeds from sale of equipment.
4. Cash dividends paid.
5. Redemption of bonds payable.
$ 195,000
73,000
23,000
68,000
2823
Amount
$ 44,000
267,088
(187,000)
85,000
13,000
39,000
11,000
111,000
Increase
(Decrease)
$ 30,000
50,000
31,000
c. During 2024, bonds payable with a face value of $60,000 were issued in exchange for property, plant, and equipment. There was
no amortization of bond discount or premium.
23,000
5,000
23,080
Required:
Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31,
2024. The following two responses are required for each item:
Category
8,000
33,000
a. Determine the amount that should be reported in Del Conte's 2024 statement of cash flows.
b. Select the category (i.e., Operating activity, Investing activity and Financing activity) in which the amount should be reported in the
statement of cash flows.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2Fbbae0711-c5c8-4cca-afe9-b593c508f9a5%2Fqbjnsfb_processed.png&w=3840&q=75)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
