The following are comparative balance sheets for Vaughn Company. Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation-equipment Total VAUGHN Company Comparative Balance Sheets December 31 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2022 $72,600 86,300 170,500 73,800 260,000 (65,900) $597,300 $35,400 151,100 214,900 195,900 $597,300 2021 $33,000 71,400 186,600 100,800 200,800 (34,100) $558,500 $47,000 204,000 174,700 132,800 $558,500
The following are comparative balance sheets for Vaughn Company. Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation-equipment Total VAUGHN Company Comparative Balance Sheets December 31 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2022 $72,600 86,300 170,500 73,800 260,000 (65,900) $597,300 $35,400 151,100 214,900 195,900 $597,300 2021 $33,000 71,400 186,600 100,800 200,800 (34,100) $558,500 $47,000 204,000 174,700 132,800 $558,500
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 6BE
Related questions
Question
100%
![The following are comparative balance sheets for Vaughn Company.
Assets
Cash
Accounts receivable
Inventory
Land
Equipment
Accumulated depreciation-equipment
Total
VAUGHN Company
Comparative Balance Sheets
December 31
Liabilities and Stockholders' Equity
Accounts payable
Bonds payable
Common stock ($1 par)
Retained earnings
Total
2022
$72,600
86,300
170,500
73,800
260,000
(65,900)
$597,300
$35,400
151,100
214,900
195,900
$597,300
2021
$33,000
71,400
186,600
100,800
200,800
(34,100)
$558,500
$47,000
204,000
174,700
132,800
$558,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc94e4e1c-3d4e-4486-b985-b30353acec86%2Ff63d8be2-2b14-4487-894d-3bca0cd7afd7%2Fehahla_processed.png&w=3840&q=75)
Transcribed Image Text:The following are comparative balance sheets for Vaughn Company.
Assets
Cash
Accounts receivable
Inventory
Land
Equipment
Accumulated depreciation-equipment
Total
VAUGHN Company
Comparative Balance Sheets
December 31
Liabilities and Stockholders' Equity
Accounts payable
Bonds payable
Common stock ($1 par)
Retained earnings
Total
2022
$72,600
86,300
170,500
73,800
260,000
(65,900)
$597,300
$35,400
151,100
214,900
195,900
$597,300
2021
$33,000
71,400
186,600
100,800
200,800
(34,100)
$558,500
$47,000
204,000
174,700
132,800
$558,500
![Additional information:
1.
2.
3.
4.
5.
6.
7.
Net income for 2022 was $104,800.
Depreciation expense was $31,800.
Cash dividends of $41,700 were declared and paid.
Bonds payable with a carrying value of $52,900 were redeemed for $52,900 cash.
Common stock was issued at par for $40,200 cash.
No equipment was sold during 2022.
Land was sold for its book value.
Prepare a statement of cash flows for 2022 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).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc94e4e1c-3d4e-4486-b985-b30353acec86%2Ff63d8be2-2b14-4487-894d-3bca0cd7afd7%2Fpym0aw_processed.png&w=3840&q=75)
Transcribed Image Text:Additional information:
1.
2.
3.
4.
5.
6.
7.
Net income for 2022 was $104,800.
Depreciation expense was $31,800.
Cash dividends of $41,700 were declared and paid.
Bonds payable with a carrying value of $52,900 were redeemed for $52,900 cash.
Common stock was issued at par for $40,200 cash.
No equipment was sold during 2022.
Land was sold for its book value.
Prepare a statement of cash flows for 2022 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).)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning