Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Debits > Credits by: Credits > Debits by: $ 17,000 110,000 $ 65,000 8,000 30,000 80,000 220,000 5,000 32,000 9,000 16,000 400,000 170,000 50,000 $ 606,000 $ 606,000 The following additional information is available about last year's activities: a. Net income for the year was $? b. The company sold equipment during the year for $15,000. The equipment originally cost $50,000 and had $37,000 in accumulated depreciation. c. Cash dividends of $20,000 were paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: Plant and equipment Accumulated depreciation Beginning $ 1,580,000 Ending $ 675,000 $ 1,800,000 $ 680,000 e. The balance in the Cash account at the beginning of the year was $23,000; the balance at the end of the year was $ ? f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows. Note: List any deduction in cash and cash outflows as negative amounts.
Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings Debits > Credits by: Credits > Debits by: $ 17,000 110,000 $ 65,000 8,000 30,000 80,000 220,000 5,000 32,000 9,000 16,000 400,000 170,000 50,000 $ 606,000 $ 606,000 The following additional information is available about last year's activities: a. Net income for the year was $? b. The company sold equipment during the year for $15,000. The equipment originally cost $50,000 and had $37,000 in accumulated depreciation. c. Cash dividends of $20,000 were paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: Plant and equipment Accumulated depreciation Beginning $ 1,580,000 Ending $ 675,000 $ 1,800,000 $ 680,000 e. The balance in the Cash account at the beginning of the year was $23,000; the balance at the end of the year was $ ? f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows. Note: List any deduction in cash and cash outflows as negative amounts.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 10CDQ
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Transcribed Image Text:Yoric Company listed the net changes in its balance sheet accounts for the past year as follows:
Cash and cash equivalents
Accounts receivable
Inventory
Prepaid expenses
Long-term loans to subsidiaries
Long-term investments
Plant and equipment
Accumulated depreciation
Accounts payable
Accrued liabilities
Income taxes payable
Bonds payable
Common stock
Retained earnings
Debits >
Credits by:
Credits >
Debits by:
$ 17,000
110,000
$ 65,000
8,000
30,000
80,000
220,000
5,000
32,000
9,000
16,000
400,000
170,000
50,000
$ 606,000
$ 606,000
The following additional information is available about last year's activities:
a. Net income for the year was $?
b. The company sold equipment during the year for $15,000. The equipment originally cost $50,000 and had $37,000 in accumulated
depreciation.
c. Cash dividends of $20,000 were paid during the year.
d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:
Plant and equipment
Accumulated depreciation
Beginning
$ 1,580,000
Ending
$ 675,000
$ 1,800,000
$ 680,000
e. The balance in the Cash account at the beginning of the year was $23,000; the balance at the end of the year was $ ?
f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.
Required:
Using the indirect method, prepare a statement of cash flows.
Note: List any deduction in cash and cash outflows as negative amounts.
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