The comparative balance sheets for Larkspur Corporation appear below: LARKSPUR CORPORATION Comparative Balance Sheet Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation Total assets Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity Additional information: 1. 2. 3. 5. 6. Assets 2022 $58,000 85,000 $31,500 61,500 16,900 19,500 59,500 70,500 69,500 (19,100) (11,800) $241,700 $227,100 27,800 $19,700 29,700 145,000 2021 47,300 $241,700 $6,200 16,800 115,000 89,100 $227,100 Net loss for 2022 is $12,000. Net sales for 2022 are $320,000. Cash dividends of $16.200 were declared and paid in 2022. Land was sold for cash at a loss of $3,400. This was the only land transaction during the year. Equipment with a cost of $16,000 and accumulated depreciation of $10.200 was sold for $5.200 cash. $13,000 of bonds were retired during the year at carrying (book) value. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg-15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter O for amounts)
The comparative balance sheets for Larkspur Corporation appear below: LARKSPUR CORPORATION Comparative Balance Sheet Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation Total assets Liabilities and Stockholder's Equity Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholder's equity Additional information: 1. 2. 3. 5. 6. Assets 2022 $58,000 85,000 $31,500 61,500 16,900 19,500 59,500 70,500 69,500 (19,100) (11,800) $241,700 $227,100 27,800 $19,700 29,700 145,000 2021 47,300 $241,700 $6,200 16,800 115,000 89,100 $227,100 Net loss for 2022 is $12,000. Net sales for 2022 are $320,000. Cash dividends of $16.200 were declared and paid in 2022. Land was sold for cash at a loss of $3,400. This was the only land transaction during the year. Equipment with a cost of $16,000 and accumulated depreciation of $10.200 was sold for $5.200 cash. $13,000 of bonds were retired during the year at carrying (book) value. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg-15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter O for amounts)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The comparative balance sheets for Larkspur Corporation appear below:
LARKSPUR CORPORATION
Comparative Balance Sheet
Cash
Accounts receivable (net)
Prepaid insurance
Land
Equipment
Accumulated depreciation
Liabilities and Stockholder's Equity
Accounts payable
Bonds payable
Common stock
Retained earnings
Total liabilities and stockholder's equity
Additional information:
1.
2
3.
4.
Total assets
5.
6.
Cash Flows from Operating Activities
Net Income/(Loss)
Adjustments to reconcile net income to
Net Cash Provided by Operating Activities
Depreciation Expense
Loss on Disposal of Plant Assets
Increase in Accounts Receivable
Proceeds from the Sale of Land
Increase in Accounts Payable
LARKSPUR CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2022
v
Assets
v
✓
2022
✓
$58,000
85,000
27,800
19,500
70,500
(19,100 )
$241,700
$19,700
Net loss for 2022 is $12,000. Net sales for 2022 are $320,000.
Cash dividends of $16.200 were declared and paid in 2022.
Land was sold for cash at a loss of $3,400. This was the only land transaction during the year.
Equipment with a cost of $16,000 and accumulated depreciation of $10.200 was sold for $5,200 cash.
$13,000 of bonds were retired during the year at carrying (book) value.
Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000.
29,700
Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash
flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. Enter O for amounts.)
145,000
47,300
$241,700
$
2021
$31,500
61,500
16,900
59,500
$
69,500
(11,800)
$227,100
$6,200
16,800
115,000
12000
89,100
$227,100
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