Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows". Record the journal entry for the sale of equipment to determine the cash effect of this transaction If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error. Use T accounts to analyze Investing Section (LT Assets) and Financing Section (LT Liabilities & Equity) for SCF ------------ Martinez Inc Balance Sheet and Income Statement Data   12/31/2025 12/31/2024 Current Assets:     Cash $ 5,900 $ 6,900 Accounts Receivable 61,400 51,200 Inventory 45,200 63,800 Total Current Assets 112,500 121,900 PPE 152,700 130,200 Accumulated Depreciation (35,400) (25,000) Land 80,400 67,900 Total Assets $ 310,200 $ 295,000       Current Liabilities:     Accounts Payable $ 46,300 $ 40,400 Wages Payable 12,000 9,900 LT Notes Payable 68,300 79,500 Total Liabilities 126,600 129,800       Stockholders' Equity:     Common Stock 130,000 130,000 Retained Earnings 53,600 35,200 Total Stockholders' Equity 183,600 165,200 Total Liabilities & Stockholders' Equity $ 310,200 $ 295,000       Sales Revenue $ 335,075   Less Cost of Goods Sold 175,200   Gross Profit 159,875   Operating Expenses (120,100)   Operating Income 39,775   Interest Expense (11,400)   Gain on Sale of Equipment 2,000   Income Before Taxes 30,375   Less Income Tax Expense 6,075   Net Income $ 24,300   Additional Information: 1) The company sold equipment that had an original cost of $20,100. Amount equipment was depreciated at sale was 70%. 2) There have been no sales of land during the year. 3) Depreciation expense is included in operating expenses. 4) There have been no additional borrowings under the long term note payable. 5) There has been no repurchase of treasury stock. 6) Dividends were declared and paid during 2025

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Using the following information, complete an indirect method SCF in good form. The SCF should be presented in the worksheet labeled "Statement of Cash Flows".

Record the journal entry for the sale of equipment to determine the cash effect of this transaction

If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error.

Use T accounts to analyze Investing Section (LT Assets) and Financing Section (LT Liabilities & Equity) for SCF

------------

Martinez Inc

Balance Sheet and Income Statement Data

  12/31/2025 12/31/2024
Current Assets:    
Cash $ 5,900 $ 6,900
Accounts Receivable 61,400 51,200
Inventory 45,200 63,800
Total Current Assets 112,500 121,900
PPE 152,700 130,200
Accumulated Depreciation (35,400) (25,000)
Land 80,400 67,900
Total Assets $ 310,200 $ 295,000
     
Current Liabilities:    
Accounts Payable $ 46,300 $ 40,400
Wages Payable 12,000 9,900
LT Notes Payable 68,300 79,500
Total Liabilities 126,600 129,800
     
Stockholders' Equity:    
Common Stock 130,000 130,000
Retained Earnings 53,600 35,200
Total Stockholders' Equity 183,600 165,200
Total Liabilities & Stockholders' Equity $ 310,200 $ 295,000
     
Sales Revenue $ 335,075  
Less Cost of Goods Sold 175,200  
Gross Profit 159,875  
Operating Expenses (120,100)  
Operating Income 39,775  
Interest Expense (11,400)  
Gain on Sale of Equipment 2,000  
Income Before Taxes 30,375  
Less Income Tax Expense 6,075  
Net Income $ 24,300  

Additional Information:

1) The company sold equipment that had an original cost of $20,100. Amount equipment was depreciated at sale was 70%.

2) There have been no sales of land during the year.

3) Depreciation expense is included in operating expenses.

4) There have been no additional borrowings under the long term note payable.

5) There has been no repurchase of treasury stock.

6) Dividends were declared and paid during 2025

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Record the journal entry for the sale of equipment to determine the cash effect of this transaction

If ending cash on the SCF doesn't equal ending cash per the Balance Sheet, you've made a mistake somewhere. To find the error, recheck your work once, then redo the problem if you can't find your error.

Use T accounts to analyze Investing Section (LT Assets) and Financing Section (LT Liabilities & Equity) for SCF

 

Can you please provide the T accounts 

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What would the T accounts look like in good form?

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