Question

In: Accounting

The record of the LEI Corporation provided the full LEI Corporation Balance sheet January 1, 2018          ...

The record of the LEI Corporation provided the full

LEI Corporation Balance sheet

January 1, 2018           December 31, 2018

Cash                                                                            15,000                         31,000

Account Receivable                                                   30,000                         28,000

Allowance for doubtful Account                                (1,500)                        (2,000)

Inventory                                                                     10,000                         15,000

Long term Investment                                                2,400                           1,400

Operational Assets                                                      80,000                         81,000

Accumulated Depreciation                                         (20,000)                      (16,000)

Land                                                                            40,100                         81,100

Account Payables                                                       10,000                         11,000

Wages Payables                                                          2,000                           1,000

Interest Payables                                                         0                                  1,000

Notes Payables, long-term                                          20,000                         46,000

Common Stock                                                           80,000                         110,000

Additional paid in capital                                           20,000                         26,000

Retained Earnings                                                       24,000                         25,000

Additional Information

  • Recorded the results of its 25% equity-based investment in Sara Company’s net loss of 4,000
  • Sold an operational asset for 4,000 in cash the asset had an original cost basing 15,000 and a carrying value at disposition of $ 6,000
  • Wrote off $ 3,000 of accounts receivables as uncollectible
  • Acquired land value at $ 21,000 and issued commons stock in exchange for a note payable bearing interest at 5%
  • Paid incomes taxes of $ 2,000
  • Settled a $ 10,000 long term note payable by issuing common stock to the creditor
  • Declared a dividend of $ 5,000

Instructions: Prepare a Statement of Cash Flows using Indirect Method.

Solutions

Expert Solution

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheeet.

ekkarill92 answered 1 year ago
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