Here are comparative balance sheets for Alpha Company. ALPHA COMPANY Comparative

Question

Here are comparative balance sheets for Alpha Company. ALPHA COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash $72,710 $22,001 Accounts receivable 85,652 76,161 Inventories 169,800 188,601 Land 75,070 100,300 Equipment 259,540 200,580 Accumulated depreciation (65,861) (32,198) Total $596,911 $555,445 Liabilities and Stockholders' Equity Accounts payable $39,209 $46,636 Bonds payable 151,530 203,230 Common stock ($1 par) 214,140 175,750 Retained earnings 192,032 129,829 Total $596,911 $555,445 Additional information: Net income for 2014 was $101,690, depreciation was $33,663. Cash dividends of $39,487 were declared and paid. Bonds payable amounting to $51,700 were redeemed for cash $51,700. Common stock was issued for $38,390 cash. Land was sold for $25,230 cash, there was no loss. Equipment was purchased for $58,960 cash. Instructions Prepare a statement of cash flows for 2014 using the indirect method.

Explanation / Answer

Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from Operating Activities Net Income 101690 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 33663 Increase in Accounts Receivable -9491 Decrease in Inventory 18801 Decrease in Accounts Payable -7427 35546 Net Cash Provided by Operating Activities 137236 Cash Flows from Investing Activities Sale of Land 25230 Purchase of Equipment -58960 Net Cash used by Investing Activities -33730 Cash Flows from Financing Activities Issuance of Common Stock 38390 Payment of Cash Dividends -39487 Redemption of Bonds -51700 Net Cash used by Financing Activities -52797 Net Increase in Cash 50709 Cash at Beginning of Period 22001 Cash at End of Period 72710

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

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