Chapter 23, Problem 21E

To determine

Worksheet for statement of cash flows: It represents all the debits, credits, and adjustments pertaining to cash flow made during that financial year.

To Prepare: To prepare a worksheet in good form for the statement of cash flows.

Given Information: Comparative balance sheet for SW Corporation.

Particulars	2017 ($)	2016 ($)
Cash	16,500	21,000
Short-term investments	25,000	19,000
Accounts receivable	43,000	45,000
Allowance for doubtful accounts	(1,800)	(2,000)
Prepaid expenses	4,200	2,500
Inventory	81,500	65,000
Land	50,000	50,000
Buildings	125,000	73,500
Accumulated depreciation—buildings	(30,000)	(23,000)
Equipment	53,000	46,000
Accumulated depreciation—equipment	(19,000)	(15,500)
Delivery equipment	39,000	39,000
Accumulated depreciation—delivery equipment	(22,000)	(20,500)
Patents	15,000	0
	379,400	300,000
Accounts payable	26,000	16,000
Short-term notes payable (trade)	4,000	6,000
Accrued payables	3,000	4,600
Mortgage payable	73,000	53,400
Bonds payable	50,000	62,500
Capital stock	140,000	102,000
Paid-in capital in excess of par	10,000	4,000
Retained earnings	73,400	51,500
	379,400	300,000