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Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Debits > Credits by: Credits > Debits by: Cash $ 142,900 170,100 Accounts receivable Inventory Prepaid expenses $ 84,600 4,300 101,000 Long-term loans to subsidiaries Long-term investments 94,000 Plant and equipment 254,000 Accumulated depreciation 65,400 48,000 Accounts payable Accrued liabilities 5,600 Income taxes payable 9,800 404,000 Bonds payable Common stock 126,000 Retained earnings 75,500 $ 792,600 $ 792,600 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 $35,200. The equipment originally cost $161,000 and it had $127,200 in accumulated depreciation at the time of sale. c. Cash dividends of $10,700 were declared and 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 Beginning $ 2,940,000 $ 975,200 Ending $ 3,194,000 $ 1,040,600 Accumulated depreciation e. The balance in the Cash account at the beginning of the year was $109,500; 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 for the year. (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: Debits > Credits by: Credits > Debits by: Cash $ 142,900 170,100 Accounts receivable Inventory Prepaid expenses $ 84,600 4,300 101,000 Long-term loans to subsidiaries Long-term investments 94,000 Plant and equipment 254,000 Accumulated depreciation 65,400 48,000 Accounts payable Accrued liabilities 5,600 Income taxes payable 9,800 404,000 Bonds payable Common stock 126,000 Retained earnings 75,500 $ 792,600 $ 792,600 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 $35,200. The equipment originally cost $161,000 and it had $127,200 in accumulated depreciation at the time of sale. c. Cash dividends of $10,700 were declared and 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 Beginning $ 2,940,000 $ 975,200 Ending $ 3,194,000 $ 1,040,600 Accumulated depreciation e. The balance in the Cash account at the beginning of the year was $109,500; 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 for the year. (List any deduction in cash and cash outflows as negative amounts.)

FINANCIAL ACCOUNTING
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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Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Credits > Debits > Credits by: Debits by: Cash Accounts receivable $ 142,900 170, 100 Inventory $ 84,600 Prepaid expenses 4,300 101,000 Long-term loans to subsidiaries Long-term investments 94,000 Plant and equipment 254,000 Accumulated depreciation 65,400 48,000 Accounts payable Accrued liabilities 5,600 9,800 Income taxes payable Bonds payable Common stock 404,000 126,000 Retained earnings 75,500 $ 792,600 $ 792,600 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 $35,200. The equipment originally cost $161,000 and it had $127,200 in accumulated depreciation at the time of sale. c. Cash dividends of $10,700 were declared and paid during the year. d. The beginning and ending balances in the plant and Equipment and Accumulated Depreciation accounts are given below: Ending Plant and equipment Beginning $ 2,940,000 $ 975,200 Accumulated depreciation $ 3,194,000 $ 1,040,600 e. The balance in the Cash account at the beginning of the year was $109,500; 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 for the year. (List any deduction in cash and cash outflows as negative amounts.)
Transcribed Image Text:Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Credits > Debits > Credits by: Debits by: Cash Accounts receivable $ 142,900 170, 100 Inventory $ 84,600 Prepaid expenses 4,300 101,000 Long-term loans to subsidiaries Long-term investments 94,000 Plant and equipment 254,000 Accumulated depreciation 65,400 48,000 Accounts payable Accrued liabilities 5,600 9,800 Income taxes payable Bonds payable Common stock 404,000 126,000 Retained earnings 75,500 $ 792,600 $ 792,600 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 $35,200. The equipment originally cost $161,000 and it had $127,200 in accumulated depreciation at the time of sale. c. Cash dividends of $10,700 were declared and paid during the year. d. The beginning and ending balances in the plant and Equipment and Accumulated Depreciation accounts are given below: Ending Plant and equipment Beginning $ 2,940,000 $ 975,200 Accumulated depreciation $ 3,194,000 $ 1,040,600 e. The balance in the Cash account at the beginning of the year was $109,500; 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 for the year. (List any deduction in cash and cash outflows as negative amounts.)
Yoric Company Statement of Cash Flows Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Increase in accounts payable Increase in income taxes payable Net cash provided by operating activities Investing activities: Decrease in long-term loans to subsidiaries Additions to long-term investments Proceeds from sale of equipment Net cash used in investing activities Financing activities: Issuance of bonds payable Repurchase of common stock Cash dividends paid Net cash provided by financing activities Net increase in cash Beginning cash and cash equivalents Ending cash and cash equivalents $ $ CA 86,200 0 86,200 0 0 86,200 86,200
Transcribed Image Text:Yoric Company Statement of Cash Flows Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Increase in accounts payable Increase in income taxes payable Net cash provided by operating activities Investing activities: Decrease in long-term loans to subsidiaries Additions to long-term investments Proceeds from sale of equipment Net cash used in investing activities Financing activities: Issuance of bonds payable Repurchase of common stock Cash dividends paid Net cash provided by financing activities Net increase in cash Beginning cash and cash equivalents Ending cash and cash equivalents $ $ CA 86,200 0 86,200 0 0 86,200 86,200
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