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Assets Cash FURTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year Prior Year $ 88,500 $ 72,400 88,420 298,156 1,360 460,336 65,625 266,800 2,195 423,120 142,500 123,000 (44, 125) (53,500) $ 558,711 $ 68,141 72,000 140,141 185,250 60,000 173,320 $ 492,620 $ 137,175 72,750 209,925 d. Paid $52,125 cash to reduce the long-term notes payable. e. Issued 4,000 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,100. 165, 250 0 117,445 $ 558,711 $ 492,620 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the balance. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign,

Assets Cash FURTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year Prior Year $ 88,500 $ 72,400 88,420 298,156 1,360 460,336 65,625 266,800 2,195 423,120 142,500 123,000 (44, 125) (53,500) $ 558,711 $ 68,141 72,000 140,141 185,250 60,000 173,320 $ 492,620 $ 137,175 72,750 209,925 d. Paid $52,125 cash to reduce the long-term notes payable. e. Issued 4,000 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,100. 165, 250 0 117,445 $ 558,711 $ 492,620 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the balance. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign,

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter24: Analysis Of Financial Statements
Section: Chapter Questions
Problem 10SPA: RATIO ANALY SIS OF COMPARATI VE FIN ANCIAL STATE MENT S Refer to the financial statements in Problem...
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Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash For Current Year Ended December 31 Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year
Transcribed Image Text:Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash For Current Year Ended December 31 Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year
Assets Cash FORTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities. Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year $ 72,400 88,420 298,156 1,360 460,336 142,500 (44, 125) $ 558,711 $ 68,141 72,000 140, 141 185,250 60,000 173,320 $ 558,711 Prior Year. $ 88,500 65,625 266,800 2,195 d. Paid $52,125 cash to reduce the long-term notes payable. e. Issued 4,000 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,100. 423,120 123,000 (53,500) $ 492,620 $ 137,175 72,750 209,925 165,250 0 117,445 $ 492,620 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the balance.. Required: 1. Prepare a complete statement of cash flows using the Indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.
Transcribed Image Text:Assets Cash FORTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities. Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year $ 72,400 88,420 298,156 1,360 460,336 142,500 (44, 125) $ 558,711 $ 68,141 72,000 140, 141 185,250 60,000 173,320 $ 558,711 Prior Year. $ 88,500 65,625 266,800 2,195 d. Paid $52,125 cash to reduce the long-term notes payable. e. Issued 4,000 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,100. 423,120 123,000 (53,500) $ 492,620 $ 137,175 72,750 209,925 165,250 0 117,445 $ 492,620 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term notes payable for the balance.. Required: 1. Prepare a complete statement of cash flows using the Indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.
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