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Newman Corporation's comparative balance sheets are presented below. Newman Corporation Comparative Balance Sheet December 31 Assets...
Newman Corporation's comparative balance sheets are presented below. Newman Corporation Comparative Balance Sheet December 31 Assets 2020 2019 Cash $15,200 $17,700 Accounts receivable 25,200 22,300 Investments (long-term) 20,000 16,000 Equipment 60,000 70,000 Accumulated depreciation (14,000) (10,000) Total Assets $106,400 $116,000 Liabilities & Stockholder Equity Accounts payable $14,600 $11,100 Bonds payable 10,000 30,000 Common stock ($1 par) 50,000 45,000 Retained earnings 31,800 29,900 Total Liabilities & Stockholder Equity $106,400 $116,000 Additional information: 1. Net income was $18,300. Dividends declared and paid were $16,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300. 3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. Instruction Prepare a statement of cash flows for 2020 using the indirect method.
Solutions
Expert Solution
| Cash Flow Statement - Newman Corporation | ||
| Indirect Method | ||
| Cash Flow From Operating Activities | ||
| Net Income | $18,300.00 | |
| Adjustments | ||
| Add: Depreciation (14000-(10000-1200)) | $5,200.00 | |
| Add: Loss on Sale of Equipment (3300-(10000-1200) | $5,500.00 | |
| Less: Increase In Accounts Receivables | -$2,900.00 | |
| Add: Increase In Accounts Payable | $3,500.00 | |
| $11,300.00 | ||
| Cash Flow From Operating Activities | $29,600.00 | |
| Cash Flow From Investing Activities | ||
| Sale Proceeds Of Equipment | $3,300.00 | |
| Purchase investment | -$4,000.00 | |
| Cash Flow From Investing Activities | -$700.00 | |
| Cash Flow From Financing Activities | ||
| Retirement of Bond | -$20,000.00 | |
| Issuance of Stock | $5,000.00 | |
| Cash Dividends Paid | -$16,400.00 | |
| Cash Flow From Financing Activities | -$31,400.00 | |
| Net Cash Flow For The Year | -$2,500.00 | |
| Add:Beginning Cash Balance | $17,700.00 | |
| Ending Cash Balance | $15,200.00 |
ekkarill92 answered 2 years agoRelated Solutions
Reynolds Corporation's comparative balance sheets are presented below. Reynolds CORPORATION Balance Sheets December 31 2018 2017...
Reynolds Corporation's comparative balance sheets are
presented below.
Reynolds CORPORATION
Balance Sheets
December 31
2018
2017
Cash
$ 10,000
$ 9,000
Accounts receivable
35,000
30,000
Inventory
25,500
20,000
Land
15,000
15,000
Building
90,000
90,000
Accumulated depreciation
(27,000)
(25,000)
Total
$148,500
$139,000
Accounts payable
$ 50,000
$ 45,000
Common stock
65,000
60,000
Retained earnings
33,500
34,000
Total
$148,500
$139,000
Reynolds' 2018 income statement included net credit
sales of $200,000, cost of goods sold of $120,000, and net income
of...
A comparative balance sheet for Party Corporation is presented below. Party Corporation Comparative Balance Sheets 31-Dec...
A comparative balance sheet for Party Corporation is presented
below.
Party Corporation
Comparative Balance Sheets
31-Dec
2019
2018
Cash
$18,700
$22,700
Accounts receivable
$24,700
$22,300
Investments
$25,000
$16,000
Equipment
$59,000
$70,000
Accumulated depreciation
($14,500)
($10,000)
Total
$112,900
$121,000
Accounts payable
$13,600
$11,100
Bonds payable
$6,000
$30,000
Common stock
$50,000
$45,000
Retained earnings
$43,300
$34,900
Total
$112,900
$121,000
Additional information:
1. Net income for 2019
was $17,700; Dividends declared and paid were $9,300.
2. Equipment which
cost $11,000 and...
A comparative balance sheet for Party Corporation is presented below. Party Corporation Comparative Balance Sheets 31-Dec...
A comparative balance sheet for Party Corporation is presented
below.
Party Corporation
Comparative Balance Sheets
31-Dec
2019
2018
Cash
$18,700
$22,700
Accounts receivable
$24,700
$22,300
Investments
$25,000
$16,000
Equipment
$59,000
$70,000
Accumulated depreciation
($14,500)
($10,000)
Total
$112,900
$121,000
Accounts payable
$13,600
$11,100
Bonds payable
$6,000
$30,000
Common stock
$50,000
$45,000
Retained earnings
$43,300
$34,900
Total
$112,900
$121,000
Additional information:
1. Net income for 2019
was $17,700; Dividends declared and paid were $9,300.
2. Equipment which
cost $11,000 and...
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. Assets 2017...
The comparative balance sheets for Rothlisberger Company as of
December 31 are presented below.
Assets
2017
2016
Cash
$58,200
$46,000
Accounts Receivable
$41,100
$63,400
Inventory
$148,900
$145,600
Prepaid Expenses
$15,000
$27,600
Land
$101,900
$133,300
Buildings
$200,200
$200,200
Accumulated Depreciation - Buildings
$60,300
$33,600
Equipment
$228,500
$155,400
Accumulated Depreciation - Equipment
$42,600
$36,300
Total
$690,900
$701,600
LIABIITIES AND STOCKHOLDERS EQUITY
Accounts Payable
$46,000
$39,700
Bonds Payable
$260,000
$293,600
Common stock, $1 Par
$193,600
$208,300
Retained Earnings
$191,300
$208,300
Total
$690,900
$701,600...
Rojas Corporation’s comparative balance sheets are presented below. ROJAS CORPORATION Comparative Balance Sheets December 31 2020...
Rojas Corporation’s comparative balance sheets are presented
below.
ROJAS CORPORATION
Comparative Balance Sheets
December 31
2020
2019
Cash
$14,400
$10,000
Accounts receivable
20,800
23,000
Land
19,800
25,900
Buildings
70,300
70,300
Accumulated depreciation—buildings
(14,700
)
(10,600
)
Total
$110,600
$118,600
Accounts payable
$12,200
$27,600
Common stock
75,600
71,000
Retained earnings
22,800
20,000
Total
$110,600
$118,600
Additional information:
1.
Net income was $22,600. Dividends declared and paid were
$19,800.
2.
No noncash investing and financing activities occurred during
2020.
3.
The land...
Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2020...
Rodriquez Corporation’s comparative balance sheets are presented
below:
RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31
2020
2019
Cash
$16,600
$17,700
Accounts receivable
25,400
22,500
Investments
20,150
15,850
Equipment
60,050
70,150
Accumulated depreciation—equipment
(14,150
)
(10,500
)
Total
$108,050
$115,700
Accounts payable
$14,450
$11,050
Bonds payable
10,800
30,200
Common stock
50,000
44,800
Retained earnings
32,800
29,650
Total
$108,050
$115,700
Additional information:
1.
Net income was $18,750. Dividends declared and paid were
$15,600.
2.
Equipment which cost $10,100 and had accumulated depreciation...
Rodriquez Corporation’s comparative balance sheets are presented below: RODRIQUEZ CORPORATION Comparative Balance Sheets December 31 2020...
Rodriquez Corporation’s comparative balance sheets are presented
below:
RODRIQUEZ CORPORATION
Comparative Balance Sheets
December 31
2020
2019
Cash
$16,700
$17,600
Accounts receivable
24,900
22,000
Investments
19,850
16,250
Equipment
59,950
69,950
Accumulated depreciation—equipment
(14,050
)
(10,300
)
Total
$107,350
$115,500
Accounts payable
$14,650
$11,050
Bonds payable
10,500
30,000
Common stock
49,900
44,900
Retained earnings
32,300
29,550
Total
$107,350
$115,500
Additional information:
1.
Net income was $18,650. Dividends declared and paid were
$15,900.
2.
Equipment which cost $10,000 and had accumulated depreciation...
7B Harman Corporation’s comparative balance sheets are presented below. HARMAN CORPORATION Comparative Balance Sheets December 31
7B Harman Corporation’s comparative balance sheets are presented
below.
HARMAN CORPORATION
Comparative Balance Sheets
December
31 2017 2016
Cash $
27,200 $ 17,700
Accounts
receivable 24,200 22,300
Investments 20,000 16,000
Prepaid
Expenses 10,000 15,000
Equipment 60,000 70,000
Accumulated
depreciation (14,000) (10,000)
Total $127,400 $131,000
Accounts
payable $
19,600 $ 11,100
Taxes
Payable 6,000 1,000
Bonds
payable 14,000 30,000
Common
stock 55,000 60,000
Retained
earnings 32,800 29,900
Total $127,400 $131,000
Additional information:
1. Net income was $34,300. Dividends declared and paid were
$31,400.
2. Equipment which cost $10,000 and had accumulated depreciation
of $1,200 was sold for $5,300.
3. All other changes in noncurrent account balances had a direct...
A comparative balance sheet for Talkington Corporation is presented below. December 31 Assets 2017 2016 Cash...
A comparative balance sheet for Talkington Corporation is
presented below.
December
31
Assets
2017
2016
Cash
$68,000
$22,000
Accounts receivable
82,000
66,000
Inventory
170,000
189,000
Land
71,000
110,000
Equipment
280,000
200,000
Accumulated depreciation–equipment
(74,000)
(42,000)
Total
$597,000
$545,000
Liabilities and Stockholders’ Equity
Accounts payable
$34,000
$47,000
Bonds payable
150,000
200,000
Common stock ($1 par)
164,000
164,000
Retained earnings
249,000
134,000
Total
$597,000
$545,000
Additional information:
1.
Net income for 2017 was $155,000; there were no gains or
losses.
2.
Cash...
A comparative balance sheet for Martinez Corporation is presented below. December 31 Assets 2017 2016 Cash...
A comparative balance sheet for Martinez Corporation is
presented below.
December 31
Assets
2017
2016
Cash
$ 72,870
$ 22,000
Accounts
receivable
83,730
67,860
Inventory
181,730
190,860
Land
72,730
111,860
Equipment
261,730
201,860
Accumulated
Depreciation-Equipment
( 70,730
)
( 43,860
)
Total
$ 602,060
$ 550,580
Liabilities
and Stockholders' Equity
Accounts
payable
$ 35,730
$ 48,860
Bonds payable
150,000
200,000
Common stock ($1
par)
214,000
164,000
Retained
earnings
202,330
137,720
Total
$ 602,060
$ 550,580
Additional information:
1.
Net income for 2017 was $...
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