A comparative balance sheet for Orozco Corporation is presented below. December

Question

A comparative balance sheet for Orozco Corporation is presented below.

December 31

(71,594)

(44,281)

$599,907

$547,281

199,313

134,000

$599,907

$547,281

Additional information:

Statement of Cash Flows

Thank you

December 31

Assets 2012 2011 Cash $63,313 $22,000 Accounts receivable 84,594 68,281 Inventories 182,594 191,281 Land 73,594 112,281 Equipment 267,406 197,719 Accumulated depreciation-equipment

(71,594)

(44,281)

      Total

$599,907

$547,281

Liabilities and Stockholders' Equity Accounts payable $36,594 $49,281 Bonds payable 150,000 200,000 Common stock ($1 par) 214,000 164,000 Retained earnings

199,313

134,000

     Total

$599,907

$547,281

Explanation / Answer

Indirect Method PARTICULARS AMOUNT AMOUNT Operating Activities Net Income 110188 Add : Depreciation for the year 27313 Add: loss on sale of Investments Changes in Assets and liabilities Less : Increase in A/c receivable ($16,313) Add : Decrease in Inventory $8,687 Less: decrease in Accounts payables ($12,687) Cash from operating activities $117,188 Investment Activities Sales of Land $38,687 Less :Purchase of Equipment ($69,687) Cash from Investment Activities ($31,000) Finance Activities Common stock issue $50,000 Less :Redemption of Bonds ($50,000) Less: Cash dividends paid ($44,875) Cash from Finance Activities ($44,875) Total cash from all the activities $41,313 Add: Opening Cash Balance $22,000 Closing cash balance (Balance figure) $63,313

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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