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The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $65, 159 31, 268 157,965 2,425 255, 980 (153,090) 187,650 $547,357 $62,098 33,495 252,000 199,764 $547,357 $1,497,000 (795,606) 701,394 (22,768) (26,270) (258,330) (258, 390) $135,644 Year 1 $38, 7:30 22,938 173, 760 4,850 286, 728 (238,870) 76, 150 $364, 270 70, 440 28,719 201,000 64, 120 $364,270 Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $111,500. 2. Purchased new equipment for $99,500 3. Sold old equipment that cost $130,240 with accumulated depreciation of $108,540 for $21,700 cash. 4. Issued common stock for $51,000. Y

The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $65, 159 31, 268 157,965 2,425 255, 980 (153,090) 187,650 $547,357 $62,098 33,495 252,000 199,764 $547,357 $1,497,000 (795,606) 701,394 (22,768) (26,270) (258,330) (258, 390) $135,644 Year 1 $38, 7:30 22,938 173, 760 4,850 286, 728 (238,870) 76, 150 $364, 270 70, 440 28,719 201,000 64, 120 $364,270 Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $111,500. 2. Purchased new equipment for $99,500 3. Sold old equipment that cost $130,240 with accumulated depreciation of $108,540 for $21,700 cash. 4. Issued common stock for $51,000. Y

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cash flows from operating activities: Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from financing activities: Ending cash balance +
Transcribed Image Text:Cash flows from operating activities: Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from financing activities: Ending cash balance +
Problem 12-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable. Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities. Accounts payable (inventory) Salaries payable Stockholders equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $65, 159 31, 268 157,965 2,425 255,980 (153,090) 187,650 $547,357 $62,098 33,495 252,000 199,764 $547,357 $1,497,000 (795,606) 701,394 (22,760) (26,270) (258,330) (258,390) $135,644 Year 1 $38,730 22,930 RACEWAY CORPORATION 173, 760 4,850 286, 720 (238,870) 76, 150 $364, 270 70, 440 28,710 Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $111,500. 2. Purchased new equipment for $99,500. 3. Sold old equipment that cost $130,240 with accumulated depreciation of $108,540 for $21,700 cash. 4. Issued common stock for $51,000. 201,000 64, 120 $364,270 Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.)
Transcribed Image Text:Problem 12-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable. Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities. Accounts payable (inventory) Salaries payable Stockholders equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $65, 159 31, 268 157,965 2,425 255,980 (153,090) 187,650 $547,357 $62,098 33,495 252,000 199,764 $547,357 $1,497,000 (795,606) 701,394 (22,760) (26,270) (258,330) (258,390) $135,644 Year 1 $38,730 22,930 RACEWAY CORPORATION 173, 760 4,850 286, 720 (238,870) 76, 150 $364, 270 70, 440 28,710 Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $111,500. 2. Purchased new equipment for $99,500. 3. Sold old equipment that cost $130,240 with accumulated depreciation of $108,540 for $21,700 cash. 4. Issued common stock for $51,000. 201,000 64, 120 $364,270 Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.)
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