Assets Cash Accounts receivable Inventory 2019 S 63,000 85,000 170,000 75,000 27

Question

Assets Cash Accounts receivable Inventory 2019 S 63,000 85,000 170,000 75,000 270,000 2018 S 22,000 76,000 189,000 100,000 200,000 (32,000) an Equipment Accumulated depreciation- equipment(66,000) Total $597,000 $555,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock (S1 par) Retained earnings S 39,000 150,000 216,000 192,000 $597,000 S 47,000 200,000 174,000 134,000 $555,000 Total Additional information: 1. Net income for 2019 was $93,000. 2. Cash dividends of $35,000 were declared and paid 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2019, but land was sold at cost. Instructions Prepare a statement of cash flows for 2019 using the indirect method.

Explanation / Answer

Statement of Cash Flows For the Year Ended December 31, 2019 Cash Flows from Operating Activities: Net income 93000 Adjustments to reconcile net income to Net cash provided by operating activities Depreciation expense 34000 Increase in Accounts receivables -9000 Decrease in inventory 19000 Decrease in accounts payable -8000 36000 Net cash provided by operating activities 129000 Cash Flows from Investing Activities: Purchase of Equipment -70000 Sale of Land 25000 Net Cash Provided by Investing Activities -45000 Cash Flows from Financing Activities Payment of Cash Dividends -35000 Redemption of Bonds Payable -50000 Issuance of Common Stock 42000 Net Cash Used by Financing Activities -43000 Net Increase in Cash 41000 Cash at Beginning of Period 22000 Cash at End of Period 63000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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