The comparative balance sheet for the ZYX Company at December 31, 2019 and 2018 is as follows: Assets: 12/31/19 12/31/18 Cash $146,600 $179,800 Accounts Receivable 224,600 242,000 Merchandise Inventory 321,600 299,200 Prepaid Expenses 13,400 9,600 Equipment 655,000 537,000 Accumulated depreciation-equipment Total Assets Liabilities and Stockholders' Equity (170,800) (132,200) Accounts payable (merchandise creditors) $250,200 $237,600 Mortgage note payable 336,000 Common Stock, $10 par 74,000 24,000 Paid in Capital-common stock 470,000 320,000 Retained Earnings 396,200 217,800 Total Liabiiities and Stockholders' Equity Additionai data obtained from an examination of the accounts in the ledger for 2019 are as follows: Net Income, $332,000 Depreciation reported on the income statement, $83,400 Equipment was purchased at a cost of &162,800 and fully depreciated equipment costing $44,800 was discarded. The mortgage note payable was not due until 2021 but the terms permitted earlier payment without penalty 10,000 shares of common stock were issued at $20 for cash Cash dividends declared and paid, $153,600 Instructions: Prepare a statement of cash flows using the indirect method.
The comparative balance sheet for the ZYX Company at December 31, 2019 and 2018 is as follows: Assets: 12/31/19 12/31/18 Cash $146,600 $179,800 Accounts Receivable 224,600 242,000 Merchandise Inventory 321,600 299,200 Prepaid Expenses 13,400 9,600 Equipment 655,000 537,000 Accumulated depreciation-equipment Total Assets Liabilities and Stockholders' Equity (170,800) (132,200) Accounts payable (merchandise creditors) $250,200 $237,600 Mortgage note payable 336,000 Common Stock, $10 par 74,000 24,000 Paid in Capital-common stock 470,000 320,000 Retained Earnings 396,200 217,800 Total Liabiiities and Stockholders' Equity Additionai data obtained from an examination of the accounts in the ledger for 2019 are as follows: Net Income, $332,000 Depreciation reported on the income statement, $83,400 Equipment was purchased at a cost of &162,800 and fully depreciated equipment costing $44,800 was discarded. The mortgage note payable was not due until 2021 but the terms permitted earlier payment without penalty 10,000 shares of common stock were issued at $20 for cash Cash dividends declared and paid, $153,600 Instructions: Prepare a statement of cash flows using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The comparative
|
Assets: |
12/31/19 |
12/31/18 |
|
Cash |
$146,600 |
$179,800 |
|
|
224,600 |
242,000 |
|
Merchandise Inventory |
321,600 |
299,200 |
|
Prepaid Expenses |
13,400 |
9,600 |
|
Equipment |
655,000 |
537,000 |
|
Total Assets Liabilities and |
(170,800) |
(132,200) |
|
Accounts payable (merchandise creditors) |
$250,200 |
$237,600 |
|
Mortgage note payable |
|
336,000 |
|
Common Stock, $10 par |
74,000 |
24,000 |
|
Paid in Capital-common stock |
470,000 |
320,000 |
|
|
396,200 |
217,800 |
Total Liabiiities and Stockholders' Equity
Additionai data obtained from an examination of the accounts in the ledger for 2019 are as follows:
- Net Income, $332,000
- Depreciation reported on the income statement, $83,400
- Equipment was purchased at a cost of &162,800 and fully depreciated equipment costing $44,800 was discarded.
- The mortgage note payable was not due until 2021 but the terms permitted earlier payment without penalty
- 10,000 shares of common stock were issued at $20 for cash
- Cash dividends declared and paid, $153,600
Instructions: Prepare a statement of
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