Here are comparative balance sheets for Syal Company. SYAL COMPANY Comparative B

Question

Here are comparative balance sheets for Syal Company.

SYAL COMPANY
Comparative Balance Sheets
December 31 Assets 2012 2011 Cash $72,600 $22,270 Accounts receivable 85,590 76,280 Inventory 169,910 189,000 Land 75,730 101,590 Equipment 259,630 199,840 Accumulated depreciation%u2014equipment (66,330 ) (31,530 )    Total $597,130 $557,450 Liabilities and Stockholders%u2019 Equity Accounts payable $39,360 $47,480 Bonds payable 150,770 203,850 Common stock ($1 par) 217,390 172,210 Retained earnings 189,610 133,910    Total $597,130 $557,450
Additional information:

1. Net income for 2012 was $103,740. 2. Cash dividends of $48,040 were declared and paid. 3. Bonds payable amounting to $53,080 were redeemed for cash $53,080. 4. Common stock was issued for $45,180 cash. 5. No equipment was sold during 2012, but land was sold at cost.
Prepare a statement of cash flows for 2012 using the indirect method. SYAL COMPANY
Comparative Balance Sheets
December 31 Assets 2012 2011 $72,600 $22,270 85,590 76,280 169,910 189,000 75,730 101,590 259,630 199,840 (66,330 ) (31,530 ) $597,130 $557,450 Liabilities and Stockholders%u2019 Equity $39,360 $47,480 150,770 203,850 217,390 172,210 189,610 133,910 $597,130 $557,450 SYAL COMPANY
Comparative Balance Sheets
December 31 Assets 2012 2011 Cash $72,600 $22,270 Accounts receivable 85,590 76,280 Inventory 169,910 189,000 Land 75,730 101,590 Equipment 259,630 199,840 Accumulated depreciation%u2014equipment (66,330 ) (31,530 )    Total $597,130 $557,450 Liabilities and Stockholders%u2019 Equity Accounts payable $39,360 $47,480 Bonds payable 150,770 203,850 Common stock ($1 par) 217,390 172,210 Retained earnings 189,610 133,910    Total $597,130 $557,450

Explanation / Answer

Cash flow from operating activities

net income = 103740

decrease in account receivable = (9310)

increase in inventory = (19090)

increase in account payable = (53080)

net cash flow from operating activities = 22260

net cash from investing activities = 101590-75730 = 25860

from financial activities

sales of bond = 53080

cash divident = (48040)

issue of common stock = 45180

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.