Prepare a statement of cash flows (indirect method). Ignore tax effects. The net changes in the balance sheet accounts of ESPN, Inc. forthe year 2021 are shown below:AccountDebit$ 100,600CashAccounts receivable$Allowance for doubtful accountsInventory 197,200Prepaid expensesLong-term investmentsLand405,000Buildings 650,000Machinery 100,000Equipment28,000Accumulated depreciation:BuildingsMachineryEquipment20,000Accounts payableAccrued liabilitiesDividends payablePremium on bonds.Bonds payablePreferred stock ($50 par)Common stock ($10 par)$1,805,20024,00012,00020,000183,200Additional information:Machinery900,00064,00072,000128,00036,000144,000Additional paid-in capital-commonRetained earnings70,000Credit156,00067,200$1,805,20010,000223,2001. Net income for 2021$160,0002.Cash dividends of $128,000 were declared December15, 2021, payable January 15, 2022. A 5% stock dividend wasissued March 31, 2021, when the market value was $22.00 pershare.3.The long-term investments were sold for $140,000.4. A building and land which cost $480,000 and had abook value of $350,000 were sold for $400,000. The cost ofthe land, included in the cost and book value above, was$20,000.5. The following entry was made to record anexchange of an old machine for a new one:160,000MachineryAccumulated40,000MachineryCash140,0006. A fully depreciated copier machine which cost$28,000 was written off.7. Preferred stock of $70,000 par value was redeemedfor $90,000.8. The company sold 12,000 shares of its commonstock ($10 par) on June 15, 2021 for $25 a share. There were87,600 shares outstanding on December 31, 2021.9.Bonds were sold at 104 on December 31, 2021.10.Land that was condemned had a book value of$240,000. Proceeds received totaled $108,000.Depreciation-60,000InstructionsPrepare a statement of cash flows (indirect method). Ignore taxeffects.

The cash flow statement is prepared at the end of the period to know the cash position. It reflects…

The net changes in the balance sheet accounts of ESPN, Inc. for the year 2021 are shown below: Account Debit $ 100,600 Cash Accounts receivable Allowance for doubtful accounts 197,200 Inventory Prepaid expenses Long-term investments Land 405,000 Buildings 650,000 20,000 Credit $ 64,000 144,000 10,000

The net changes in the balance sheet accounts of ESPN, Inc. for the year 2021 are shown below: Account Debit $ 100,600 Cash Accounts receivable Allowance for doubtful accounts 197,200 Inventory Prepaid expenses Long-term investments Land 405,000 Buildings 650,000 20,000 Credit $ 64,000 144,000 10,000

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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