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
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
If ending cash on the SCF doesn't equal ending cash per the
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 |
| 61,400 | 51,200 | |
| Inventory | 45,200 | 63,800 |
| Total Current Assets | 112,500 | 121,900 |
| PPE | 152,700 | 130,200 |
| (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 |
| Common Stock | 130,000 | 130,000 |
| 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
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
6) Dividends were declared and paid during 2025
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Record the
If ending cash on the SCF doesn't equal ending cash per the
Use T accounts to analyze Investing Section (LT Assets) and Financing Section (LT Liabilities & Equity) for SCF
Can you please provide the T accounts
by Bartleby ExpertWhat would the T accounts look like in good form?
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