Yoric Company listed the net changes in its balance sheet accounts for the past
ID: 2521536 • Letter: Y
Question
Yoric Company listed the net changes in its balance sheet accounts for the past year as follows Debits> Credits > Credits by: Debits by Cash Accounts receivable Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ 132,900 170,300 4,300 96,000 $ 63,100 86,000 266,000 66,000 49,000 5,400 9,000 203,000 122,000 76,800 $674,900 $674,900 The following additional information is available about last year's activities Net income for the year was $? _- The company sold equipment during the year for $35,100. The equipment originally cost $160,100 and it had $126,400 in accumulated depreciation at the time of sale a. b. c. Cash dividends of $11,000 were declared and paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below Ending Beginning $ 2,933,000 3,199,000 Plant and equipment Accumulated depreciation $978,500 $1,044,500 e. The balance in the Cash account at the beginning of the year was $109,600; the balance at the end of the year was $? f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change Required: Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)Explanation / Answer
Operating Activities: Net Income 76800 Adjustments to convert net income to cash basis: Dividend declare and paid (W. No.-1) 11000 Depreciation (W. No.-2) 192400 Gain on sale of equipment (W. No.-3) -1400 Increase in accounts payable 49000 Decrease in accrued liability -5400 Increase in income taxes payable 9000 Increase in accounts receivable -170300 Increase in prepaid expenses -4300 Decrease in inventory 63100 Net cash provided by operating activities 143100 Investing activities: Proceeds from sale of equipment 35100 Additions to long-term investments -96000 Long term loans to subsidiaries 86000 Additions to plant & equipment (W. No.-4) -426100 Net cash used in investing activities -401000 Financing activities: Cash dividends -11000 Issuance of common stock 122000 Issuance of bonds payable 203000 Net cash provided by financing activities 314000 Net increase in cash 132900 Beginning cash and cash equivalents 109600 Ending cash and cash equivalents 242500 Working Notes: 1. Dividend will be declare out of retained earnings so adjustments has been made to net income above. 2. Depreciation Opening accumulated depreciation 978500 Less: accumulated depreciation on sale of equipment 126400 Closing balance should be 852100 Actual closing balance 1044500 Depreciation during the year 192400 3. Gain on sale of equipment original cost 160100 Accumulated depreciation 126400 Written down value 33700 Sale amount 35100 Gain on sale of equipment 1400 4. Additions to plant & equipment Opening balance of plant & equipment 2933000 Less: sale of plant & equipment 160100 Closing balance should be 2772900 Actual closing balance 3199000 Additions to plant & equipment 426100
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.