Please Solve the attached Cash flow statment problem by indirect way by using excel sheet in order to have readable answer. AssetsCashAccounts receivableInventoriesPrepaid expensesLandREYNOLDS COMPANYComparative Balance SheetsDecember 31BuildingsAccumulated depreciation-buildingsEquipmentAccumulated depreciation-equipmentTotalsLiabilities and Stockholders' EquityAccounts payableAccrued expenses payableBonds payableCommon stock ($1 par)Retained earningsTotalsRevenuesCost of goods soldOperating expensesInterest expenseLoss on sale of equipment2003$ 54,00068,00054,0004,00045,000200,000(21,000)193,000(28,000)$569,000Income from operationsIncome tax expenseNet income$ 23,00010,000110,000220,000206,000$569,000Additional information:1. Operating expenses include depreciation expense of $33,0002002$ 37,00026,000-0-REYNOLDS COMPANYIncome StatementFor the Year Ended December 31, 20032. Land was sold at its book value for cash.3. Cash dividends of $55,000 were declared and paid in 2003.4.6,00070,000200,000(11,000)68,000(10,000)$386,000$ 40,000-0-150,00060,000136,000$386,000$465,000221,00012,0002,000ChangeIncrease/Decrease$ 17,000 Increase42,000 Increase54,000 Increase2,000 Decrease25,000 Decrease-0-10,000 Increase125,000 Increase18,000 Increase$ 17,000 Decrease10,000 Increase40,000 Decrease160,000 Increase70,000 Increase$890,000700,000190,00065,000$125,0005. Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $41,000 anda book value of $36,000 was sold for $34,000 cash.6. Bonds of $10,000 were redeemed at their book value for cash. Bonds of $30,000 were convertedinto common stock.7. Common stock ($1 par) of $130,000 was issued for cash.8.

Statement of Cash Flow - This statement shows an increase and decreases in cash due to three major…

Assets Cash Accounts receivable Inventories Prepaid expenses Land REYNOLDS COMPANY Comparative Balance Sheets December 31 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals Revenues Cost of goods sold Operating expenses Interest expense Loss on sale of equipment 2003 $ 54,000 68,000 54,000 4,000 Income from operations Income tax expense Net income 45,000 200,000 (21,000) 193,000 (28,000) $569,000 $ 23,000 10,000 110,000 220,000 206,000 $569,000 REYNOLDS COMPANY Income Statement For the Year Ended December 31, 2003 Additional information: 1. Operating expenses include depreciation expense of $33,000 2002 $ 37,000 26,000 -0- 2. Land was sold at its book value for cash. 3. Cash dividends of $55,000 were declared and paid in 2003. 6,000 70,000 200,000 (11,000) 68,000 (10,000) $386,000 $ 40,000 -0- 150,000 60,000 136,000 $386,000 $465,000 221,000 12,000 2,000 Change Increase/Decrease $ 17,000 Increase 42,000 Increase 54,000 Increase 2,000 Decrease 25,000 Decrease -0- 10,000 Increase 125,000 Increase 18,000 Increase $ 17,000 Decrease 10,000 Increase 40,000 Decrease 160,000 Increase 70,000 Increase $890,000 700,000 190,000 65,000 $125,000 Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $41,000 and a book value of $36,000 was sold for $34,000 cash. 6. Bonds of $10,000 were redeemed at their book value for cash. Bonds of $30,000 were converted into common stock. 7. Common stock ($1 par) of $130,000 was issued for cash.

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.12MCE