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RAMIREZ COMPANY Comparative Balance Sheets December 31

RAMIREZ COMPANY Comparative Balance Sheets December 31

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 Flow Statment Problem no 03

STRACKMAN Assets Cash Accounts receivable Inventory - Prepaid expenses Land Equipment Accumulated RAMIREZ COMPANY Comparative Balance Sheets December 31 depreciation-equipment Building Accumulated depreciation-building Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total 2010 $ 71,000 44,000 151,450 15,280 105,000 228,000 (45,000) 200,000 (60,000) $709,730 $ 47,730 260,000 200,000 202,000 $709,730 2009 $ 45,000 62,000 142,000 21,000 130,000 155,000 (35,000) 200,000 (40,000) $680,000 $ 40,000 300,000 160,000 180,000 $680,000 Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid ex- penses of $5,720. 2. Land was sold for cash at book value. 3. Cash dividends of $15,000 were paid. 4. Net income for 2010 was $37,000. 5. Equipment was purchased for $95,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31, 2010, using the indirect method. direct. *P17-12A Condensed financial data of Oprah Company appear below.
Transcribed Image Text:STRACKMAN Assets Cash Accounts receivable Inventory - Prepaid expenses Land Equipment Accumulated RAMIREZ COMPANY Comparative Balance Sheets December 31 depreciation-equipment Building Accumulated depreciation-building Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total 2010 $ 71,000 44,000 151,450 15,280 105,000 228,000 (45,000) 200,000 (60,000) $709,730 $ 47,730 260,000 200,000 202,000 $709,730 2009 $ 45,000 62,000 142,000 21,000 130,000 155,000 (35,000) 200,000 (40,000) $680,000 $ 40,000 300,000 160,000 180,000 $680,000 Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid ex- penses of $5,720. 2. Land was sold for cash at book value. 3. Cash dividends of $15,000 were paid. 4. Net income for 2010 was $37,000. 5. Equipment was purchased for $95,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of $1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31, 2010, using the indirect method. direct. *P17-12A Condensed financial data of Oprah Company appear below.
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