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: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.5MCP
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How to do this please show me the formula, thank you.
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F610594b9-f108-4162-b123-5c9b36dfce77%2F3558f85c-3ae3-42ac-921c-0d344d6ab6ce%2Flghesp_processed.jpeg&w=3840&q=75)
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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