Sarasota Corporation's balance sheet at the end of 2024 included the following items. Current assets (Cash $82,000) $236,480 Current liabilities $151,480 Land 31,100 Bonds payable 101,480 Buildings 121,480 Common stock 181,100 Equipment 91,100 Retained earnings 45,100 Accum. depr.-buildings (31,480) Total $479,160 Accum. depr.-equipment (11,000) Patents 41,480 Total $479,160 The following information is available for 2025. 1. Net income was $55,350. 2. Equipment (cost $21,480 and accumulated depreciation $9,480) was sold for $11,480. 3. Depreciation expense was $5,480 on the building and $10,480 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,480. 6. An addition to the building was completed at a cost of $28,480. 7. A long-term investment in stock was purchased for $16,000. 8. Bonds payable of $51,100 were issued. 9. Cash dividends of $30,000 were declared and paid. 10. Treasury stock was purchased at a cost of $11,000. Prepare a statement of cash flows for 2025. (Show amounts that decrease cash flow with either a sign eg-15,000 or in parenthesis es (15,000) Adjustments to reconcile net income to Sarasota Corporation Statement of Cash Flows
Sarasota Corporation's balance sheet at the end of 2024 included the following items. Current assets (Cash $82,000) $236,480 Current liabilities $151,480 Land 31,100 Bonds payable 101,480 Buildings 121,480 Common stock 181,100 Equipment 91,100 Retained earnings 45,100 Accum. depr.-buildings (31,480) Total $479,160 Accum. depr.-equipment (11,000) Patents 41,480 Total $479,160 The following information is available for 2025. 1. Net income was $55,350. 2. Equipment (cost $21,480 and accumulated depreciation $9,480) was sold for $11,480. 3. Depreciation expense was $5,480 on the building and $10,480 on equipment. 4. Patent amortization was $2,500. 5. Current assets other than cash increased by $29,000. Current liabilities increased by $14,480. 6. An addition to the building was completed at a cost of $28,480. 7. A long-term investment in stock was purchased for $16,000. 8. Bonds payable of $51,100 were issued. 9. Cash dividends of $30,000 were declared and paid. 10. Treasury stock was purchased at a cost of $11,000. Prepare a statement of cash flows for 2025. (Show amounts that decrease cash flow with either a sign eg-15,000 or in parenthesis es (15,000) Adjustments to reconcile net income to Sarasota Corporation Statement of Cash Flows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sarasota Corporation's balance sheet at the end of 2024 included the following items.
Current assets (Cash $82,000) $236,480
Current liabilities
$151,480
Land
31,100
Bonds payable
101,480
Buildings
121,480
Common stock
181,100
Equipment
91,100
Retained earnings
45,100
Accum. depr.-buildings
(31,480)
Total
$479,160
Accum. depr.-equipment
(11,000)
Patents
41,480
Total
$479,160
The following information is available for 2025.
1.
Net income was $55,350.
2.
Equipment (cost $21,480 and accumulated depreciation $9,480) was sold for $11,480.
3.
Depreciation expense was $5,480 on the building and $10,480 on equipment.
4.
Patent amortization was $2,500.
5.
Current assets other than cash increased by $29,000. Current liabilities increased by $14,480.
6.
An addition to the building was completed at a cost of $28,480.
7.
A long-term investment in stock was purchased for $16,000.
8.
Bonds payable of $51,100 were issued.
9.
Cash dividends of $30,000 were declared and paid.
10.
Treasury stock was purchased at a cost of $11,000.
Transcribed Image Text:Prepare a statement of cash flows for 2025. (Show amounts that decrease cash flow with either a sign eg-15,000 or in parenthesis
es (15,000)
Adjustments to reconcile net income to
Sarasota Corporation
Statement of Cash Flows
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