Comparative balance sheets for International Company are presented below.

INTERNATIONAL COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 $ 73,000 $ 22,000 76,000 189,000 100,000 200,000 (42,000) Cash Accounts receivable Inventory Land 85,000 180,000 75,000 Equipment Accumulated depreciation-equipment 250,000 (66,000) Total $597,000 $545,000 Liabilities and Stockholders' Equity $ 34,000 $ 47,000 Accounts payable Bonds payable Common stock ($1

Additional information:

1. Net income for 2017 was $135,000.

2. Cash dividends of $70,000 were declared and paid.

3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.

4. Common stock was issued for $50,000 cash.

5. Depreciation expense was $24,000.

6. Sales revenue for the year was $978,000.

7. Land was sold at cost, and equipment was purchased for cash.

Instructions

Prepare a worksheet for a statement of cash flows for 2017 using the indirect method. Enter the reconciling items directly on the worksheet, using letters to cross-reference each entry.

Solutions

Expert Solution

CASH FLOW STATEMENT 2017

Cash flow from Operating Activities
Net Income	135000
Depreciation	24000
Inc in AR	-9000
Dec in Inventory	9000
Dec in AP	-13000	146000

Cash flow from Investing Activities
Sale of land	25000
Purchase of Equipment	-50000	-25000


Cash flow from Financing Activities
Issue of Common Stock	50000
Dividend paid	-70000
Bonds Redeemed	-50000	-70000

Total Cash Flows		51000
Cash Opening		22000
Closing Cash Flow		73000

CASH FLOW STATEMENT 2017

Cash flow from Operating Activities
Net Income	135000
Depreciation	24000
Inc in AR	-9000
Dec in Inventory	9000
Dec in AP	-13000	146000

Junaid answered 2 years ago

Next > < Previous

Related Solutions

The comparative balance sheets for Beckwith Products Company are presented below. Beckwith Products Comparative Balance Sheets...

The comparative balance sheets for Beckwith Products Company are presented below. Beckwith Products Comparative Balance Sheets For the Years Ended December 31, 2018 and 2019 1 2019 2018 2 Assets: 3 Cash $36,950.00 $25,000.00 4 Accounts receivable 75,100.00 78,000.00 5 Inventory 45,300.00 36,000.00 6 Property, plant, and equipment 256,400.00 153,000.00 7 Accumulated depreciation 38,650.00 20,000.00 8 Total assets $375,100.00 $272,000.00 9 Liabilities and equity: 10 Accounts payable $13,100.00 $11,000.00 11 Interest payable 11,500.00 8,000.00 12 Wages payable 8,100.00 9,000.00 13...

Sunland Company’s comparative balance sheets are presented below. Sunland Company Comparative Balance Sheets December 31 2019...

Sunland Company’s comparative balance sheets are presented below. Sunland Company Comparative Balance Sheets December 31 2019 2018 Cash $ 15,000 $ 10,200 Accounts receivable 21,400 23,800 Land 19,800 26,400 Buildings 70,100 70,100 Accumulated depreciation—buildings (15,300 ) (10,800 ) Total $111,000 $119,700 Accounts payable $ 12,800 $ 27,800 Common stock 74,600 73,400 Retained earnings 23,600 18,500 Total $111,000 $119,700 Additional information: 1. Net income was $22,800. Dividends declared and paid were $17,700. 2. No noncash investing and financing activities occurred during...

Pharoah Company’s comparative balance sheets are presented below: Pharoah Company Comparative Balance Sheets December 31 2020...

Pharoah Company’s comparative balance sheets are presented below: Pharoah Company Comparative Balance Sheets December 31 2020 2019 Cash $ 17,000 $ 17,500 Accounts receivable 25,000 22,400 Investments 19,850 16,050 Equipment 60,050 69,750 Accumulated depreciation—equipment (13,750 ) (10,400 ) Total $108,150 $115,300 Accounts payable $ 14,750 $ 11,250 Bonds payable 10,400 30,000 Common stock 49,500 45,200 Retained earnings 33,500 28,850 Total $108,150 $115,300 Additional information: 1.Net income was $18,450. Dividends declared and paid were $13,800. 2.Equipment which cost $9,700 and had...

The comparative balance sheets for Rothlisberger Company as of December 31 are presented below.

The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. Additional information: 1. Operating expenses include depreciation expense of $42,000 and charges from prepaid expenses of $5,720. 2. Land was sold for cash at book value. 3. Cash dividends of $20,000 were paid. 4. Net income for 2017 was $42,000. 5. Equipment was purchased for $88,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $6,000 cash. 6. Bonds...

Rodriquez Corporation’s comparative balance sheets are presented below.

Rodriquez Corporation’s comparative balance sheets are presented below. 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. No noncash investing and financing activities occurred during 2017. Instructions (a) Prepare a statement of cash flows for 2017 using the indirect method. (b) Compute free cash flow.

Rojas Corporation’s comparative balance sheets are presented below.

Rojas Corporation’s comparative balance sheets are presented below. Additional information: 1. Net income was $22,630. Dividends declared and paid were $19,500. 2. No noncash investing and financing activities occurred during 2017. 3. The land was sold for cash of $4,900. Instructions (a) Prepare a statement of cash flows for 2017 using the indirect method. (b) Compute free cash flow.

Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet...

Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 45,900 $ 30,600 Accounts receivable 39,500 40,800 Inventory 73,700 62,400 Total current assets 159,100 133,800 Long-term investments 165,200 208,000 Property, plant, and equipment 294,700 163,500 Less accumulated depreciation 53,000 51,500 Total assets $ 566,000 $ 453,800 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 39,600 $ 43,200 Accrued liabilities 25,700 30,600...

Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet...

Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 48,600 $ 33,000 Accounts receivable 39,900 43,200 Inventory 71,000 61,200 Total current assets 159,500 137,400 Long-term investments 168,500 220,000 Property, plant, and equipment 286,300 159,000 Less accumulated depreciation 53,000 52,500 Total assets $ 561,300 $ 463,900 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 38,500 $ 42,800 Accrued liabilities 25,000 31,800...

128. Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance...

128. Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 45,900 $ 31,500 Accounts receivable 39,900 42,800 Inventory 71,000 62,400 Total current assets 156,800 136,700 Long-term investments 176,600 212,000 Property, plant, and equipment 286,300 162,000 Less accumulated depreciation 57,200 53,500 Total assets $ 562,500 $ 457,200 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 38,200 $ 42,800 Accrued liabilities 25,400...

Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet...

Comparative balance sheets and the income statements for Ellis Corporation are presented below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 49,500 $ 30,600 Accounts receivable 39,100 43,600 Inventory 71,000 63,000 Total current assets 159,600 137,200 Long-term investments 176,600 208,000 Property, plant, and equipment 303,000 165,000 Less accumulated depreciation 57,200 51,000 Total assets $ 582,000 $ 459,200 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 38,200 $ 42,400 Accrued liabilities 25,400 30,600...

Subjects