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The following are CR Company's comparative statements of financial position, income statement, and additional information: CR Company Statement of Financial Position December 31, 2015 and 2014 2015 2014 Assets $ 43,050| 34,125 $ 23,925 39,825 Cash Accounts receivable

The following are CR Company's comparative statements of financial position, income statement, and additional information: CR Company Statement of Financial Position December 31, 2015 and 2014 2015 2014 Assets $ 43,050| 34,125 $ 23,925 39,825 Cash Accounts receivable

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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The following are CR Company's comparative statements of financial position, income statement, and additional information: CR Company Statement of Financial Position December 31, 2015 and 2014 2015 2014 Assets $ 43,050 34,125 156,000| 3,600 135,825 (61,950) $ 310,650| $ 23,925 39,825 146,475 1,650 146,700 (47,550)| $ 311,025 Cash Accounts receivable Merchandise inventory Prepaid expense Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income tax payable Dividends payable Bonds payable Share capital-ordinary, $10 par value Retained earnings $ 28,800 5,100 $ 33,750 4,425 4,500 37,500 168,750 62,100 $ 311,025 168,750 108,000 $ 310,650| Total liabilities and equity CR Company Income Statement For Year Ended December 31, 2015 Sales $ 446,100| Cost of goods sold Other operating expenses Depreciation expense $ 222,300 120,300 25,500 (368,100) 78,000 Other gains (losses) Loss on sale of equipment 3,300| 825 Loss on retirement of bonds (4,125) Profit before tax 73,875 Income tax expense (13,725) Net profit $ 60,150| Additional information: a. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash. b. Equipment purchases are for cash. c. Accumulated Depreciation is affected by depreciation expense and the sale of equipment. d. The balance of Retained earnings is affected by dividend declarations and net profit. e. Accounts payable balances result from merchandise inventory purchases. f. Prepaid expenses relate to “other operating expenses". Required: Prepare a statement of cash flows using the indirect method for year 2015.
Transcribed Image Text:The following are CR Company's comparative statements of financial position, income statement, and additional information: CR Company Statement of Financial Position December 31, 2015 and 2014 2015 2014 Assets $ 43,050 34,125 156,000| 3,600 135,825 (61,950) $ 310,650| $ 23,925 39,825 146,475 1,650 146,700 (47,550)| $ 311,025 Cash Accounts receivable Merchandise inventory Prepaid expense Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income tax payable Dividends payable Bonds payable Share capital-ordinary, $10 par value Retained earnings $ 28,800 5,100 $ 33,750 4,425 4,500 37,500 168,750 62,100 $ 311,025 168,750 108,000 $ 310,650| Total liabilities and equity CR Company Income Statement For Year Ended December 31, 2015 Sales $ 446,100| Cost of goods sold Other operating expenses Depreciation expense $ 222,300 120,300 25,500 (368,100) 78,000 Other gains (losses) Loss on sale of equipment 3,300| 825 Loss on retirement of bonds (4,125) Profit before tax 73,875 Income tax expense (13,725) Net profit $ 60,150| Additional information: a. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash. b. Equipment purchases are for cash. c. Accumulated Depreciation is affected by depreciation expense and the sale of equipment. d. The balance of Retained earnings is affected by dividend declarations and net profit. e. Accounts payable balances result from merchandise inventory purchases. f. Prepaid expenses relate to “other operating expenses". Required: Prepare a statement of cash flows using the indirect method for year 2015.
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