Here are comparative balance sheets for Velo Company. VELO COMPANY Comparative B

Question

Here are comparative balance sheets for Velo Company.

VELO COMPANY

Comparative Balance Sheets

December 31

Assets 2019 2018 Cash $63,000 $22,000 Accounts receivable 85,000 76,000 Inventory 170,000 189,000 Land 75,000 100,000 Equipment 270,000 200,000 Accumulated depreciation—equipment (66,000) (32,000) Total $597,000 $555,000 Liabilities and Stockholders' Equity Accounts payable $39,000 $47,000 Bonds payable 150,000 200,000 Common stock ($1 par) 216,000 174,000 Retained earnings 192,000 134,000 Total $597,000 $555,000 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.

Chrome File Edit View History Bookmarks People Window Help 71% Mon 5:40 PM N Netflix xxxDraitzelxx's Xbox clips on x Marvel's Agent Carter | Sear WileyPLUS x ,( G Here are comparative balanc Rachel c secure https://edugen.wileyplus.com edugen player ndex uni?browsechapter it m2886027&browsemoduleid;=tm 2886044&browsepageid; tm2886048&browsehref.; WileyPLUS Weygandt, Financial Accounting, 10e FINANCIAL ACCT. (ACCT298) Chapter 12. Statement of Cash Flows Select a Section Select a Study Objective B , STANDARD VIEW PRINTER VERSION BACK NEXT CHAPTER RESOURCES Here are comparative balance sheets for Velo Company Textb ORION: Build your Proficien VELO COMPANY Comparative Balance Sheets December 31 End of Chapter Homework Material 2019 2018 Assets Cash Accounts receivable Inventory Land Equipment S 63,000 S 22,000 76,000 189,000 00,000 200,000 Accumulated depreciation equipment 66,000) (32,000) S597,000 S555,000 85,000 170,000 75,000 270,000 Thinking Watch and Learn Videos Excel Videos and Total Resources Liabilities and Stockholder Accounts payable Bonds payable Common stock ($1 par) Retained earnings uit Additional Resou S 39,000S 47,000 200,000 174,000 134,000 S597,000 S555,000 150,000 216,000 192,000 COURSE RESOURCES Total Videos 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 S50,000 were redeemed for cash S50,000 4. Common stock was issued for $42,000 cash PRACTICE

Explanation / Answer

CASH FLOW STATEMENT OF VELO COMPANY FOR THE YEAR ENDING December 31, 2019 Details Amount in $ Cash Flows from Operating Activities: Net income before tax 93,000 Adjustment for Reconcile Net Income to net cash provided from Operations Add: Depreciation Expense (66,000-32,000) 34,000 Add: Decrease in Inventory(189,000-170,000) 19,000 Less: Increase in Accounts receivable(85,000-76,000) -9,000 Less: Decrease in Accounts Payable(47,000-39,000) -8,000 Net Cash inflows from Operating Activities 129,000 Cash Flows from Investing Activities: Outflow from Purchase of equipment (270,000-200,000) -70,000 Inflow from sale of Land (100,000-75,000) 25,000 Net cash outflow from Investing Activities -45,000 Cash flows from Financing Activities Dividend paid -35,000 Redemption of Bonds payable -50,000 Issuance of Common Stock 42,000 Net Cashoutflows from Financing Activities -43,000 Net Cash inflow during the year 41,000 Add: Opening balance of cash and cash Equivalents 22,000 Closing balance of cash and cash Equivalents 63,000

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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