sh ccounts receivable (net) erchandise inventory Assets repaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings T-L-I 11-Lite Dec. 31, 20Y8 $61,540 94,560 135,070 5,500 275,170 (71,540) $500,300 $105,060 0 16,000 248,000 131,240 +500 200 Dec. 31, 20Y7 $75,330 101,560 125,880 3,810 225,520 (55,310) $476,790 $99,650 143,040 10,000 134,000 90,100 176 700 otal liabilities and stockholders' equity $500,300 $476,790 itional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net me, $105,320. Depreciation reported on the income statement, $34,950. Equipment was purchased at a cost of $68,370, and fully depreciated equipment costing $18,720 was discarded, with no salvage realized. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. 6,000 shares of common stock were issued at $20 for cash. Cash dividends declared and paid, $64,180. equired: repare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, c egative adjustments.
sh ccounts receivable (net) erchandise inventory Assets repaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings T-L-I 11-Lite Dec. 31, 20Y8 $61,540 94,560 135,070 5,500 275,170 (71,540) $500,300 $105,060 0 16,000 248,000 131,240 +500 200 Dec. 31, 20Y7 $75,330 101,560 125,880 3,810 225,520 (55,310) $476,790 $99,650 143,040 10,000 134,000 90,100 176 700 otal liabilities and stockholders' equity $500,300 $476,790 itional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net me, $105,320. Depreciation reported on the income statement, $34,950. Equipment was purchased at a cost of $68,370, and fully depreciated equipment costing $18,720 was discarded, with no salvage realized. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. 6,000 shares of common stock were issued at $20 for cash. Cash dividends declared and paid, $64,180. equired: repare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, c egative adjustments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 208 are as follows:
Transcribed Image Text:Cash
Assets
Accounts receivable (net)
Merchandise inventory
Prepaid expenses
Equipment
Accumulated depreciation-equipment
Total assets
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
Mortgage note payable
Common stock, $1 par
Paid-in capital: Excess of issue price over par-common stock
Retained earnings
T-L-I-LII
-1..-'--....
Dec. 31,
20Y8
$61,540
94,560
135,070
5,500
275,170
(71,540)
$500,300
Yellow Dog Enterprises Inc.
$105,060
0
16,000
248,000
131,240
+500 300
Dec. 31,
20Y7
$75,330
101,560
125,880
3,810
225,520
(55,310)
$476,790
$99,650
143,040
10,000
134,000
90,100
176 700
Total liabilities and stockholders' equity
$500,300
$476,790
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
a. Net income, $105,320.
b. Depreciation reported on the income statement, $34,950.
c. Equipment was purchased at a cost of $68,370, and fully depreciated equipment costing $18,720 was discarded, with no salvage realized.
d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
e. 6,000 shares of common stock were issued at $20 for cash.
f. Cash dividends declared and paid, $64,180.
Required:
Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any
negative adjustments.
Transcribed Image Text:Changes in current operating assets and liabilities:
Decrease in accounts receivable
Increase in merchandise inventory
Increase in prepaid expenses
Increase in accounts payable
Net cash flow from operating activities
Cash flows from (used for) investing activities:
Cash used for equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash from sale of common stock
Cash used for dividends
Cash used to retire mortgage note payable
Net cash flow used for financing activities
Decrease in cash
Cash at the beginning of the year
Cash at the end of the year
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