In: Accounting
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
Question not attempted.
1 |
Dec. 31, 20Y3 |
Dec. 31, 20Y2 |
|
2 |
Assets |
||
3 |
Cash |
$155,000.00 |
$150,000.00 |
4 |
Accounts receivable (net) |
450,000.00 |
400,000.00 |
5 |
Inventories |
770,000.00 |
750,000.00 |
6 |
Investments |
0.00 |
100,000.00 |
7 |
Land |
500,000.00 |
0.00 |
8 |
Equipment |
1,400,000.00 |
1,200,000.00 |
9 |
Accumulated depreciation-equipment |
(600,000.00) |
(500,000.00) |
10 |
Total assets |
$2,675,000.00 |
$2,100,000.00 |
11 |
Liabilities and Stockholders’ Equity |
||
12 |
Accounts payable (merchandise creditors) |
$340,000.00 |
$300,000.00 |
13 |
Accrued expenses payable (operating expenses) |
45,000.00 |
50,000.00 |
14 |
Dividends payable |
30,000.00 |
25,000.00 |
15 |
Common stock, $4 par |
700,000.00 |
600,000.00 |
16 |
Paid-in capital: Excess of issue price over par—common stock |
200,000.00 |
175,000.00 |
17 |
Retained earnings |
1,360,000.00 |
950,000.00 |
18 |
Total liabilities and stockholders’ equity |
$2,675,000.00 |
$2,100,000.00 |
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
a. The investments were sold for $175,000 cash. | |
b. Equipment and land were acquired for cash. | |
c. There were no disposals of equipment during the year. | |
d. The common stock was issued for cash. | |
e. There was a $500,000 credit to Retained Earnings for net income. | |
f. There was a $90,000 debit to Retained Earnings for cash dividends declared. |
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities
The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.
. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Enter amounts that represent cash outflows as negative numbers using a minus sign.