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The comparative balance sheets for Acme Company appear below: Cash Accounts receivable ACME COMPANY Comparative Balance Sheet Assets Dec. 31, 2025 $38,000 18,000 Dec. 31, 2024 $13,000 14,000

The comparative balance sheets for Acme Company appear below: Cash Accounts receivable ACME COMPANY Comparative Balance Sheet Assets Dec. 31, 2025 $38,000 18,000 Dec. 31, 2024 $13,000 14,000

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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Current Attempt in Progress The comparative balance sheets for Acme Company appear below: Cash Accounts receivable Inventory Prepaid insurance Stock investments Equipment Accumulated depreciation-equipment Total assets Additional information: Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity 1. 2. ACME COMPANY Comparative Balance Sheet 3. 4. Assets Dec. 31, 2025 $38,000 18,000 25,000 7,000 -0- 60,000 (18,000) Liabilities and Stockholders' Equity $130,000 $25,000 37,000 40,000 28,000 $130,000 Dec. 31, 2024 $13,000 14,000 15,000 9,000 18,000 30,000 (14,000) $85,000 $7,000 45,000 23,000 10,000 $85,000 Net income for the year ending December 31, 2025 was $30,000. Cash dividends of $12,000 were declared and paid during the year. Stock investments on balance sheet that had a book value of $18,000 were sold for $13,000. Sales for 2025 are $130,000. Prepare a statement of cash flows for the year ended December 31, 2025, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Transcribed Image Text:Current Attempt in Progress The comparative balance sheets for Acme Company appear below: Cash Accounts receivable Inventory Prepaid insurance Stock investments Equipment Accumulated depreciation-equipment Total assets Additional information: Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity 1. 2. ACME COMPANY Comparative Balance Sheet 3. 4. Assets Dec. 31, 2025 $38,000 18,000 25,000 7,000 -0- 60,000 (18,000) Liabilities and Stockholders' Equity $130,000 $25,000 37,000 40,000 28,000 $130,000 Dec. 31, 2024 $13,000 14,000 15,000 9,000 18,000 30,000 (14,000) $85,000 $7,000 45,000 23,000 10,000 $85,000 Net income for the year ending December 31, 2025 was $30,000. Cash dividends of $12,000 were declared and paid during the year. Stock investments on balance sheet that had a book value of $18,000 were sold for $13,000. Sales for 2025 are $130,000. Prepare a statement of cash flows for the year ended December 31, 2025, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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