The balance sheets for a company, along with additional information, are provided below: Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 155,850 $ 174,600 Accounts receivable 75,200 88,500 Inventory 88,000 73,700 Prepaid rent 2,600 1,300 Long-term assets: Land 445,000 445,000 Equipment 738,000 635,000 Accumulated depreciation (409,000 ) (254,000 ) Total assets $ 1,095,650 $ 1,164,100 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 92,000 $ 78,700 Interest payable 7,050 14,100 Income tax payable 6,600 4,300 Long-term liabilities: Notes payable 117,500 235,000 Stockholders' equity: Common stock 665,000 665,000 Retained earnings 207,500 167,000 Total liabilities and stockholders' equity $ 1,095,650 $ 1,164,100 Additional Information for 2021: Net income is $62,000. The company purchases $103,000 in equipment. Depreciation expense is $155,000. The company repays $117,500 in notes payable. The company declares and pays a cash dividend of $21,500. Required: Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
The balance sheets for a company, along with additional information, are provided below: Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 155,850 $ 174,600 Accounts receivable 75,200 88,500 Inventory 88,000 73,700 Prepaid rent 2,600 1,300 Long-term assets: Land 445,000 445,000 Equipment 738,000 635,000 Accumulated depreciation (409,000 ) (254,000 ) Total assets $ 1,095,650 $ 1,164,100 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 92,000 $ 78,700 Interest payable 7,050 14,100 Income tax payable 6,600 4,300 Long-term liabilities: Notes payable 117,500 235,000 Stockholders' equity: Common stock 665,000 665,000 Retained earnings 207,500 167,000 Total liabilities and stockholders' equity $ 1,095,650 $ 1,164,100 Additional Information for 2021: Net income is $62,000. The company purchases $103,000 in equipment. Depreciation expense is $155,000. The company repays $117,500 in notes payable. The company declares and pays a cash dividend of $21,500. Required: Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The
Balance Sheets December 31, 2021 and 2020 |
||||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 155,850 | $ | 174,600 | ||||
75,200 | 88,500 | |||||||
Inventory | 88,000 | 73,700 | ||||||
Prepaid rent | 2,600 | 1,300 | ||||||
Long-term assets: | ||||||||
Land | 445,000 | 445,000 | ||||||
Equipment | 738,000 | 635,000 | ||||||
(409,000 | ) | (254,000 | ) | |||||
Total assets | $ | 1,095,650 | $ | 1,164,100 | ||||
Liabilities and |
||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 92,000 | $ | 78,700 | ||||
Interest payable | 7,050 | 14,100 | ||||||
Income tax payable | 6,600 | 4,300 | ||||||
Long-term liabilities: | ||||||||
Notes payable | 117,500 | 235,000 | ||||||
Stockholders' equity: | ||||||||
Common stock | 665,000 | 665,000 | ||||||
207,500 | 167,000 | |||||||
Total liabilities and stockholders' equity | $ | 1,095,650 | $ | 1,164,100 | ||||
Additional Information for 2021:
- Net income is $62,000.
- The company purchases $103,000 in equipment.
- Depreciation expense is $155,000.
- The company repays $117,500 in notes payable.
- The company declares and pays a cash dividend of $21,500.
Required:
Prepare the statement of
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