The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 2018 Cash Tk. 71,000 44,000 151,450 15,280 Tk.45,000 62,000 142,000 21,000 130,000 155,000 (35,000) 200,000 (40,000) Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building 105,000 228,000 (45,000) 200,000 (60,000) Tk. 709,730 Total Tk.680,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total Tk. 47,730 260,000 Tk. 40,000 300,000 200,000 202,000 Tk. 709,730 Tk. 680,000 160,000 180,000 Additional information: 1. Operating expenses include depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method.
The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 2018 Cash Tk. 71,000 44,000 151,450 15,280 Tk.45,000 62,000 142,000 21,000 130,000 155,000 (35,000) 200,000 (40,000) Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building 105,000 228,000 (45,000) 200,000 (60,000) Tk. 709,730 Total Tk.680,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total Tk. 47,730 260,000 Tk. 40,000 300,000 200,000 202,000 Tk. 709,730 Tk. 680,000 160,000 180,000 Additional information: 1. Operating expenses include depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:| The comparative balance sheets for Ramirez Company as of December 31 are presented:
RAMIREZ COMPANY
Comparative Balance Sheets
December 31
Assets
2019
2018
Cash
Tk. 71,000
44,000
151,450
15,280
105,000
228,000
(45,000)
200,000
(60,000)
Tk. 709,730 Tk.680,000
Tk.45,000
62,000
142,000
21,000
Accounts receivable
Inventory
Prepaid expenses
Land
Equipment
Accumulated depreciation-equipment
Building
Accumulated depreciation-building
130,000
155,000
(35,000)
200,000
(40,000)
Total
Liabilities and Stockholders' Equity
Accounts payable
Bonds payable
Common stock, $1 par
Retained earnings
Total
Tk. 47,730
260,000
Tk. 40,000
300,000
160,000
180,000
Tk. 709,730 Tk. 680,000
200,000
202,000
Additional information:
1. Operating expenses include depreciation expense of Tk. 42,000 and charges from prepaid
expenses of Tk. 5,720.
2. Land was sold for cash at book value.
3. Cash dividends of Tk. 15,000 were paid.
4. Net income for 2019 was Tk. 37,000.
5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with
a book value of Tk. 10,000 was sold for Tk. 6,000 cash.
6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common
stock.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect
method.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education