Problem 3 The Westland Inn had net earnings of $65,000 during 20X5. Included on its income statement for 20X5 were depreciation and amortization expenses of $150,000 and $5,000, respectively. Its current accounts on its comparative balance sheet showed the following: December 31 208 Cash Marketable Securities Accounts Receivable Inventory Prepaid Expense Accounts Payable fenoles Accrued Payroll Income Taxes Payable Current Maturities of Long-Term Debt Dividends Payable to noise 20X4 $10,000 25,000 45,000 15,000 10,000 25,000 8,000 10,000 15,000 5,000 20X5 $12,000 27,000 40,000 17,000 8,000 30,000 10,000 8,000 18,000 8,000
Problem 3 The Westland Inn had net earnings of $65,000 during 20X5. Included on its income statement for 20X5 were depreciation and amortization expenses of $150,000 and $5,000, respectively. Its current accounts on its comparative balance sheet showed the following: December 31 208 Cash Marketable Securities Accounts Receivable Inventory Prepaid Expense Accounts Payable fenoles Accrued Payroll Income Taxes Payable Current Maturities of Long-Term Debt Dividends Payable to noise 20X4 $10,000 25,000 45,000 15,000 10,000 25,000 8,000 10,000 15,000 5,000 20X5 $12,000 27,000 40,000 17,000 8,000 30,000 10,000 8,000 18,000 8,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 3
The Westland Inn had net earnings of $65,000 during 20X5. Included on its income statement
for 20X5 were depreciation and amortization expenses of $150,000 and $5,000, respectively.
Its current accounts on its comparative balance sheet showed the following:
December 31
208
Cash
Marketable Securities
Accounts Receivable
Inventory
Prepaid Expense
Accounts Payable
fenoles
Accrued Payroll
Income Taxes Payable
Current Maturities of Long-Term Debt
Dividends Payable to noise
20X4
$10,000
25,000
45,000
15,000
10,000
25,000
8,000
10,000
15,000
5,000
20X5
$12,000
27,000
40,000
17,000
8,000
30,000
10,000
8,000
18,000
8,000
Transcribed Image Text:In addition, sales of equipment, marketable securities, and investments during 20X5 were
as follows:
1. Equipment that cost $20,000 with accumulated depreciation of $12,000 was sold for
$5,000.
bearbu a
2. Investments that cost $20,000 were sold for $25,000.
3. Marketable securities that cost $10,000 were sold for $8,000.
Required:
Prepare a schedule of cash flows from operating activities for
20X5
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