Skysong Inc. had the following condensed balance sheet at the end of operations for 2024. Cash Current assets other than cash Equity investments Plant assets (net) Land During 2025, the following occurred. 1. 2. 3. 4. 5. 6. 7. 8. Skysong Inc. Balance Sheet December 31, 2024 $8,400 29,200 19,800 66,900 40,100 $164,400 (a) Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings $15,000 25,500 25,000 75,000 23,900 $164,400 A tract of land was purchased for $8,900. Bonds payable in the amount of $15,000 were redeemed at par. An additional $10,000 in common stock was issued at par. Dividends totaling $9,400 were paid to stockholders. Net income was $29,900 after allowing depreciation of $13,600. Land was purchased through the issuance of $22,600 in bonds. Skysong Inc. sold part of its investment portfolio for $13,000. This transaction resulted in a gain of $2,000 for the comp No unrealized gains or losses were recorded on these investments in 2025. Both current assets (other than cash) and current liabilities remained at the same amount. Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a-sig -15,000 or in parenthesis e.g. (15,000).)
Skysong Inc. had the following condensed balance sheet at the end of operations for 2024. Cash Current assets other than cash Equity investments Plant assets (net) Land During 2025, the following occurred. 1. 2. 3. 4. 5. 6. 7. 8. Skysong Inc. Balance Sheet December 31, 2024 $8,400 29,200 19,800 66,900 40,100 $164,400 (a) Current liabilities Long-term notes payable Bonds payable Common stock Retained earnings $15,000 25,500 25,000 75,000 23,900 $164,400 A tract of land was purchased for $8,900. Bonds payable in the amount of $15,000 were redeemed at par. An additional $10,000 in common stock was issued at par. Dividends totaling $9,400 were paid to stockholders. Net income was $29,900 after allowing depreciation of $13,600. Land was purchased through the issuance of $22,600 in bonds. Skysong Inc. sold part of its investment portfolio for $13,000. This transaction resulted in a gain of $2,000 for the comp No unrealized gains or losses were recorded on these investments in 2025. Both current assets (other than cash) and current liabilities remained at the same amount. Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a-sig -15,000 or in parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Skysong Inc. had the following condensed balance sheet at the end of operations for 2024.
Cash
Current assets other than cash
Equity investments
Plant assets (net)
Land
1.
During 2025, the following occurred.
2.
3.
4.
5.
6.
7.
8.
Skysong Inc.
Balance Sheet
December 31, 2024
$8,400
29,200
19,800
66,900
(a)
40,100
$164,400
Current liabilities
Long-term notes payable
Bonds payable
Common stock
Retained earnings
$15,000
25,500
25,000
75,000
23,900
$164,400
A tract of land was purchased for $8,900.
Bonds payable in the amount of $15,000 were redeemed at par.
An additional $10,000 in common stock was issued at par.
Dividends totaling $9,400 were paid to stockholders.
Net income was $29,900 after allowing depreciation of $13,600.
Land was purchased through the issuance of $22,600 in bonds.
Skysong Inc. sold part of its investment portfolio for $13,000. This transaction resulted in a gain of $2,000 for the comp
No unrealized gains or losses were recorded on these investments in 2025.
Both current assets (other than cash) and current liabilities remained at the same amount.
Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a-sig
-15,000 or in parenthesis e.g. (15,000).)
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