XYZ Inc's comparative balance sheets are presented below. XYZ Inc. Comparative Balance Sheets 31-Dec 2021 2020 Cash $ 18,700 $ 22,700 Accounts Receivable $ 24,700 $ 22,300 Investments $ 25,000 $ 16,000 Equipment $ 59,000 $ 70,000 Accumulated Depreciation $ (14,500) $ (10,000) Total Assets $ 112,900 $ 121,000 Accounts Payable $ 13,600 $ 11,100 Binds Payable $ 6,000 $ 30,000 Common Stock $ 50,000 $ 45,000 Retained Earnings $ 43,300 $ 34,900 Total Liabilities + Equity $ 112,900 $ 121,000 Additional information: Net income was $17,700. Dividends declared and paid were $9,300. Equipment which cost $11,000 and had accumulated depreciation of $2,000 was sold for $4000 All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. Instruction Prepare a statement of cash flows for 2021 using the indirect method. Net Income Depreciation Loss on equipment sale Change In A/R Change in A/P Cash flow from Operations Sale of equipment Change in Investments Cash from Investing Change in Bonds Payable Issue of Common Stock Dividends Cash from Financing Change in Cash

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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Question

XYZ Inc's comparative balance sheets are presented below.

XYZ Inc.

Comparative Balance Sheets

31-Dec

	2021	2020
Cash	$ 18,700	$ 22,700
Accounts Receivable	$ 24,700	$ 22,300
Investments	$ 25,000	$ 16,000
Equipment	$ 59,000	$ 70,000
Accumulated Depreciation	$ (14,500)	$ (10,000)
Total Assets	$ 112,900	$ 121,000
Accounts Payable	$ 13,600	$ 11,100
Binds Payable	$ 6,000	$ 30,000
Common Stock	$ 50,000	$ 45,000
Retained Earnings	$ 43,300	$ 34,900
Total Liabilities + Equity	$ 112,900	$ 121,000

Additional information:

Net income was $17,700. Dividends declared and paid were $9,300.

Equipment which cost $11,000 and had accumulated depreciation of $2,000 was sold for $4000

All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Instruction

Prepare a statement of cash flows for 2021 using the indirect method.

Net Income

Depreciation

Loss on equipment sale

Change In A/R

Change in A/P

Cash flow from Operations

Sale of equipment

Change in Investments

Cash from Investing

Change in Bonds Payable

Issue of Common Stock

Dividends

Cash from Financing

Change in Cash

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