A comparative balance sheet for Lyon Company appears below: LYON COMPANY Comparative Balance Sheet Dec. 31, 20CY Dec. 31, 20LY Assets Cash $ 23,000 $10,000 Accounts receivable 18,000 14,000 Inventory 27,000 18,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 18,000 Equipment 60,000 32,000 Accumulated depreciation—equipment (18,000) (14,000) Total assets $116,000 $87,000 Liabilities and Stockholders' Equity Accounts payable $ 17,000 $ 7,000 Bonds payable 37,000 47,000 Common stock 40,000 23,000 Retained earnings 22,000 10,000 Total liabilities and stockholders' equity $116,000 $87,000 Additional information: Net income for the year ending December 31, 20CY was $24,000. Cash dividends of $12,000 were declared and paid during the year. Long-term investments that had a cost of $18,000 were sold for $16,000. (you need to calculate something else here too) Depreciation expense is $4,000. Instructions: Prepare a statement of cash flows for the year ended December 31 20CY, using the indirect method.
A comparative balance sheet for Lyon Company appears below:
LYON COMPANY
Comparative Balance Sheet
Dec. 31, 20CY Dec. 31, 20LY
Assets
Cash $ 23,000 $10,000
Inventory 27,000 18,000
Prepaid expenses 6,000 9,000
Long-term investments -0- 18,000
Equipment 60,000 32,000
Accumulated
Total assets $116,000 $87,000
Liabilities and
Accounts payable $ 17,000 $ 7,000
Bonds payable 37,000 47,000
Common stock 40,000 23,000
Total liabilities and stockholders' equity $116,000 $87,000
Additional information:
- Net income for the year ending December 31, 20CY was $24,000.
- Cash dividends of $12,000 were declared and paid during the year.
- Long-term investments that had a cost of $18,000 were sold for $16,000.
(you need to calculate something else here too)
- Depreciation expense is $4,000.
Instructions:
Prepare a statement of cash flows for the year ended December 31 20CY, using the indirect method. (50)
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