prepeare cash flow statememt Additional Information1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sold for cash.2. Equipment purchases are for cash.3. Accumulated depreciation is affected by depreciation expense and the sale of equipment.4. The balance of retained earnings is affected by dividend declarations and net income.5. All sales are made on credit.6. All inventory purchases are on credit.7. Account payable balances result from inventory purchases.8. Prepaid expenses relate to "other operating expenses" Lima corporationBalance Sheet20162015December 2016 and 2015AssetsCash43,05023,925Accounts Receivable34,125InventoryPrepaid ExpensesTotal Current Assets39,825156,000 146,4753,6001,650236,775 211,875135,825 146,700(61,950) (47,550)310,650 311,025EquipmentAccumulated DepreciationTotal AssetsLiabilitiesAccounts PayableIncome Taxes PayableDividends Payable28,8005,10033,7504,4254,50042,67537,50080,175Total Short Term Liabilities33,900Bonds PayableTotal Liabilities33,900EquityCommon Stock, $10 par value | 168,750 | 168,750Retained EarningsTotal Liabilities and Equity108,00062,100310,650 311,025Lima CorporationIncome StatementDecember 31, 2016Sales446,100Cost of Goods SoldOther Operating ExpensesDepreciation ExpenseOther Gains (Losses)Loss on sale of equipment222,300120,30025,500(368,100)3,300Loss on retirement of bonds825(4,125)73,875(13,725)60,150Income before taxesIncome taxNet Income

A cash flow statement is a financial statement that summarises all cash inflows a firm receives from…

Additional Information 1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sol 2. Equipment purchases are for cash. 3. Accumulated depreciation is affected by depreciation expense and the sale 4. The balance of retained earnings is affected by dividend declarations and nE 5. All sales are made on credit.

Additional Information 1. Equipment costing $21,375 with accumulated depreciation of $11,100 is sol 2. Equipment purchases are for cash. 3. Accumulated depreciation is affected by depreciation expense and the sale 4. The balance of retained earnings is affected by dividend declarations and nE 5. All sales are made on credit.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 21E

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