The comparative balance sheets for the Skysong Beauty Supply Corporation is presented below: SKYSONG BEAUTY SUPPLY CORPORATION Comparative Balance Sheets Assets 2025 2024 Cash Accounts receivable (net) Prepaid insurance $33,300 $30,600 82,000 67,500 27,700 19,800 Land 12,500 49,500 Equipment Accumulated depreciation-equipment Total assets 76,300 67,000 (18,500) (14,400) $213,300 $220,000 Liabilities and Stockholders' Equity Accounts payable $11,500 $7,500 Bonds payable 28,900 16,200 Common stock 136,000 111,000 Retained earnings 36,900 85,300 Total liabilities and stockholder's equity $213,300 $220,000 Additional information: 1. Net loss for 2025 is $11,000. Net sales for 2025 are $290,000. 2. Cash dividends of $37,400 were declared and paid in 2025. 3. Land was sold for cash at a loss of $3,500. This was the only land transaction during the year. 4. Equipment with a cost of $15,700 and accumulated depreciation of $10,800 was sold for $4,900 cash. 5. $12,600 of bonds were retired during the year at carrying (book) value. 6. 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 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). Do not leave any answer field blank. enter O for amounts.) SKYSONG BEAUTY SUPPLY CORPORATION Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to ° <> $ $ $ $
The comparative balance sheets for the Skysong Beauty Supply Corporation is presented below: SKYSONG BEAUTY SUPPLY CORPORATION Comparative Balance Sheets Assets 2025 2024 Cash Accounts receivable (net) Prepaid insurance $33,300 $30,600 82,000 67,500 27,700 19,800 Land 12,500 49,500 Equipment Accumulated depreciation-equipment Total assets 76,300 67,000 (18,500) (14,400) $213,300 $220,000 Liabilities and Stockholders' Equity Accounts payable $11,500 $7,500 Bonds payable 28,900 16,200 Common stock 136,000 111,000 Retained earnings 36,900 85,300 Total liabilities and stockholder's equity $213,300 $220,000 Additional information: 1. Net loss for 2025 is $11,000. Net sales for 2025 are $290,000. 2. Cash dividends of $37,400 were declared and paid in 2025. 3. Land was sold for cash at a loss of $3,500. This was the only land transaction during the year. 4. Equipment with a cost of $15,700 and accumulated depreciation of $10,800 was sold for $4,900 cash. 5. $12,600 of bonds were retired during the year at carrying (book) value. 6. 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 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). Do not leave any answer field blank. enter O for amounts.) SKYSONG BEAUTY SUPPLY CORPORATION Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to ° <> $ $ $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Can you please help me by providing clear neat organized answers. Thank you!
Transcribed Image Text:The comparative balance sheets for the Skysong Beauty Supply Corporation is presented below:
SKYSONG BEAUTY SUPPLY CORPORATION
Comparative Balance Sheets
Assets
2025
2024
Cash
Accounts receivable (net)
Prepaid insurance
$33,300
$30,600
82,000
67,500
27,700
19,800
Land
12,500
49,500
Equipment
Accumulated depreciation-equipment
Total assets
76,300
67,000
(18,500)
(14,400)
$213,300
$220,000
Liabilities and Stockholders' Equity
Accounts payable
$11,500
$7,500
Bonds payable
28,900
16,200
Common stock
136,000
111,000
Retained earnings
36,900
85,300
Total liabilities and stockholder's equity
$213,300
$220,000
Additional information:
1.
Net loss for 2025 is $11,000. Net sales for 2025 are $290,000.
2.
Cash dividends of $37,400 were declared and paid in 2025.
3.
Land was sold for cash at a loss of $3,500. This was the only land transaction during the year.
4.
Equipment with a cost of $15,700 and accumulated depreciation of $10,800 was sold for $4,900 cash.
5.
$12,600 of bonds were retired during the year at carrying (book) value.
6.
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 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). Do not leave any answer field blank. enter O for amounts.)
Transcribed Image Text:SKYSONG BEAUTY SUPPLY CORPORATION
Statement of Cash Flows - Indirect Method
Adjustments to reconcile net income to
°
<>
$
$
$
$
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