You have completed the field work in connection with your audit of Kinder Company for the year ended December 31, 2023. The balance sheet accounts at the beginning and end of the year are shown below. Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment Accumulated depreciation Accounts payable Accrued liabilities Long-term notes payable Common stock Retained earnings 1. I 2. Kinder Company Balance Sheet December 31 2021 $ 30,900 43,300 35,000 0 236,500 (37,700) $308.000 3. Sold the long-term investments for $33,000 4. Paid dividends of $20,000. 5. Purchased machinery and gave a $60,000 long-term note payable. $ 17,000 21,000 70,000 130,000 70,000 $308.000 2020 $ 10,200 20,300 Your working papers from the audit contain the following additional information: 1. Net income for the year 2023, $61,000. 2. Depreciation on plant assets for the year, $12,700. 42,000 15,000 150,000 (25,000) $212.500 $ 26,500 17,000 50,000 90,000 29,000 $212.500 Instructions: Use the sheet of paper attached to the answer sheet Using the indirect method prepare the cash flow from operating activities section of the statement of cashflows. Prepare either the investing activities section or the financing activities section of the statement of cash flows.
You have completed the field work in connection with your audit of Kinder Company for the year ended December 31, 2023. The balance sheet accounts at the beginning and end of the year are shown below. Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment Accumulated depreciation Accounts payable Accrued liabilities Long-term notes payable Common stock Retained earnings 1. I 2. Kinder Company Balance Sheet December 31 2021 $ 30,900 43,300 35,000 0 236,500 (37,700) $308.000 3. Sold the long-term investments for $33,000 4. Paid dividends of $20,000. 5. Purchased machinery and gave a $60,000 long-term note payable. $ 17,000 21,000 70,000 130,000 70,000 $308.000 2020 $ 10,200 20,300 Your working papers from the audit contain the following additional information: 1. Net income for the year 2023, $61,000. 2. Depreciation on plant assets for the year, $12,700. 42,000 15,000 150,000 (25,000) $212.500 $ 26,500 17,000 50,000 90,000 29,000 $212.500 Instructions: Use the sheet of paper attached to the answer sheet Using the indirect method prepare the cash flow from operating activities section of the statement of cashflows. Prepare either the investing activities section or the financing activities section of the statement of cash flows.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:You have completed the field work in connection with your audit of Kinder Company for the year ended
December 31, 2023. The balance sheet accounts at the beginning and end of the year are shown below.
Cash
Accounts receivable (net)
Inventory
Long-term investments
Property, plant & equipment
Accumulated depreciation
1.
Accounts payable
Accrued liabilities
Long-term notes payable
Common stock
Retained earnings
2.
I
Kinder Company
Balance Sheet
December 31
2020
2021
$ 30,900 $ 10,200
43,300
20,300
35,000
42,000
0
15,000
236,500
(37,700)
$308.000
$ 17,000
21,000
70,000
130,000
70,000
$308.000
2. Depreciation on plant assets for the year, $12,700.
3. Sold the long-term investments for $33,000
4. Paid dividends of $20,000.
5. Purchased machinery and gave a $60,000 long-term note payable.
Your working papers from the audit contain the following additional information:
1. Net income for the year 2023, $61,000.
150,000
(25,000)
$212.500
$ 26,500
17,000
50,000
90,000
29,000
$212.500
Instructions: Use the sheet of paper attached to the answer sheet
Using the indirect method prepare the cash flow from operating activities section of the statement
of cashflows.
Prepare either the investing activities section or the financing activities section of the statement of
cash flows.
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