Question Content Area Condensed comparative balance sheets for Larson Co. at December 31, Years 1 and 2, appear as follows: Year 2 Year 1 Cash $100,000 $78,000 Accounts receivable (net) 78,000 85,000 Inventories 101,500 90,000 Equipment 410,000 370,000 Accumulated depreciation (150,000) (158,000) Total assets $539,500 $465,000 Accounts payable (merchandise creditors) $58,500 $55,000 Cash dividends payable 5,000 4,000 Common stock, $10 par 200,000 170,000 Paid-in capital in excess of par 62,000 60,000 Retained earnings 214,000 176,000 Total liabilities and stockholders’ equity $539,500 $465,000 In addition to the balance sheet data, assume that: • Equipment costing $125,000 was purchased for cash. • Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000. • The stock was issued for cash. • The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Larson Co.Statement of Cash FlowsFor Year Ended December 31, Year 2 Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank blank - Select - - Select - Changes in current operating assets and liabilities: blank blank - Select - - Select - blank - Select - $- Select - Cash flows from (used for) investing activities: $- Select - - Select - - Select - Cash flows from (used for) financing activities: $- Select - - Select - - Select - $- Select - Cash balance, January 1, Year 2 fill in the blank 29 Cash balance, December 31, Year 2 $fill in the blank 30

Question Content Area Condensed comparative balance sheets for Larson Co. at December 31, Years 1 and 2, appear as follows: Year 2 Year 1 Cash $100,000 $78,000 Accounts receivable (net) 78,000 85,000 Inventories 101,500 90,000 Equipment 410,000 370,000 Accumulated depreciation (150,000) (158,000) Total assets $539,500 $465,000 Accounts payable (merchandise creditors) $58,500 $55,000 Cash dividends payable 5,000 4,000 Common stock, $10 par 200,000 170,000 Paid-in capital in excess of par 62,000 60,000 Retained earnings 214,000 176,000 Total liabilities and stockholders’ equity $539,500 $465,000 In addition to the balance sheet data, assume that: • Equipment costing $125,000 was purchased for cash. • Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000. • The stock was issued for cash. • The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Larson Co.Statement of Cash FlowsFor Year Ended December 31, Year 2 Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank blank - Select - - Select - Changes in current operating assets and liabilities: blank blank - Select - - Select - blank - Select - $- Select - Cash flows from (used for) investing activities: $- Select - - Select - - Select - Cash flows from (used for) financing activities: $- Select - - Select - - Select - $- Select - Cash balance, January 1, Year 2 fill in the blank 29 Cash balance, December 31, Year 2 $fill in the blank 30

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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Question Content Area

Condensed comparative balance sheets for Larson Co. at December 31, Years 1 and 2, appear as follows:

	Year 2	Year 1
Cash	$100,000	$78,000
Accounts receivable (net)	78,000	85,000
Inventories	101,500	90,000
Equipment	410,000	370,000
Accumulated depreciation	(150,000)	(158,000)
Total assets	$539,500	$465,000

Accounts payable (merchandise creditors)	$58,500	$55,000
Cash dividends payable	5,000	4,000
Common stock, $10 par	200,000	170,000
Paid-in capital in excess of par	62,000	60,000
Retained earnings	214,000	176,000
Total liabilities and stockholders’ equity	$539,500	$465,000

In addition to the balance sheet data, assume that:

• Equipment costing $125,000 was purchased for cash.

• Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.

• The stock was issued for cash.

• The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Larson Co.Statement of Cash FlowsFor Year Ended December 31, Year 2

Cash flows from (used for) operating activities:
	$- Select -
Adjustments to reconcile net income to net cash flows from (used for) operating activities:	blank	blank
	- Select -
	- Select -
Changes in current operating assets and liabilities:	blank	blank
	- Select -
	- Select -	blank
	- Select -
		$- Select -
Cash flows from (used for) investing activities:
	$- Select -
	- Select -
		- Select -
Cash flows from (used for) financing activities:
	$- Select -
	- Select -
		- Select -
		$- Select -
Cash balance, January 1, Year 2		fill in the blank 29
Cash balance, December 31, Year 2		$fill in the blank 30

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