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The following balance sheets were taken from the records of Blalock Company:   Blalock Company Comparative Balance Sheets At December 31, 20X1 and 20X2 1   20X1 20X2 2 Assets     3 Cash $150,000.00 $185,000.00 4 Accounts receivable 70,000.00 80,000.00 5 Investments 0.00 30,000.00 6 Plant and equipment 100,000.00 105,000.00 7 Accumulated depreciation (30,000.00) (32,000.00) 8 Land 20,000.00 30,000.00 9 Total assets $310,000.00 $398,000.00 10 Liabilities and equity     11 Accounts payable $40,000.00 $50,000.00 12 Bonds payable 60,000.00 0.00 13 Mortgage payable 0.00 50,000.00 14 Preferred stock 20,000.00 0.00 15 Common stock 100,000.00 160,000.00 16 Retained earnings 90,000.00 138,000.00 17 Total liabilities and equity $310,000.00 $398,000.00       Additional transactions were as follows: A. Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000. B. Retired bonds at a price of $60,000 on December 31. C. Earned net income for the year of $68,000; paid cash dividends of $20,000.   Required:   Prepare a statement of cash flows using the worksheet approach. Use the indirect method to prepare the statement.

The following balance sheets were taken from the records of Blalock Company:   Blalock Company Comparative Balance Sheets At December 31, 20X1 and 20X2 1   20X1 20X2 2 Assets     3 Cash $150,000.00 $185,000.00 4 Accounts receivable 70,000.00 80,000.00 5 Investments 0.00 30,000.00 6 Plant and equipment 100,000.00 105,000.00 7 Accumulated depreciation (30,000.00) (32,000.00) 8 Land 20,000.00 30,000.00 9 Total assets $310,000.00 $398,000.00 10 Liabilities and equity     11 Accounts payable $40,000.00 $50,000.00 12 Bonds payable 60,000.00 0.00 13 Mortgage payable 0.00 50,000.00 14 Preferred stock 20,000.00 0.00 15 Common stock 100,000.00 160,000.00 16 Retained earnings 90,000.00 138,000.00 17 Total liabilities and equity $310,000.00 $398,000.00       Additional transactions were as follows: A. Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000. B. Retired bonds at a price of $60,000 on December 31. C. Earned net income for the year of $68,000; paid cash dividends of $20,000.   Required:   Prepare a statement of cash flows using the worksheet approach. Use the indirect method to prepare the statement.

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 balance sheets were taken from the records of Blalock Company:
 
Blalock Company
Comparative Balance Sheets
At December 31, 20X1 and 20X2
1
 
20X1
20X2
2
Assets
 
 
3
Cash
$150,000.00
$185,000.00
4
Accounts receivable
70,000.00
80,000.00
5
Investments
0.00
30,000.00
6
Plant and equipment
100,000.00
105,000.00
7
Accumulated depreciation
(30,000.00)
(32,000.00)
8
Land
20,000.00
30,000.00
9
Total assets
$310,000.00
$398,000.00
10
Liabilities and equity
 
 
11
Accounts payable
$40,000.00
$50,000.00
12
Bonds payable
60,000.00
0.00
13
Mortgage payable
0.00
50,000.00
14
Preferred stock
20,000.00
0.00
15
Common stock
100,000.00
160,000.00
16
Retained earnings
90,000.00
138,000.00
17
Total liabilities and equity
$310,000.00
$398,000.00
 
 
 
Additional transactions were as follows:
A. Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000.
B. Retired bonds at a price of $60,000 on December 31.
C. Earned net income for the year of $68,000; paid cash dividends of $20,000.
 
Required:
  Prepare a statement of cash flows using the worksheet approach. Use the indirect method to prepare the statement.
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