Assets. Dec. 31, 20Y9. Dec.31, 20Y8 Cash $155,000 $150,000 Accounts Receivable $450,000 $400,000 Inventories $770,000 $750,000 Investments 0 $100,000 Land $500,000 0 Equipment $1,400,000 $1,200,000 Accumulated Depreciation Equipment ($600,000) ($500,000) Total Assets $2, 675,000 $ 2,100,000 Liabilities/Stockers Liability. Dec. 31, 20Y9 Dec.31, 20Y8 Accounts Payable $340,000 $300,000 Accrued Expense Payable $45,000 $50,000 Dividends Payable $30,000 $ 25,000 Common Stock $4 par $700,000 $ 600,000 Paid in Capital in excess of par-Common Stock $200,000 $175,000 Retained Earnings $ 1, 360,000 $ 950,000 Total Liabilities & Stockholders Equity $ 2, 675,000. $ 2, 100,000 Additional data obtained from an examination of the accounts in the ledger for 20Y7 are as follows: The investments were sold for $175,000 cash. Equipment and land were acquired for cash. The common stock was issued for cash. There was a $500,000 credit to retained earnings for net income. There was $90,000 debit to retained earnings for cash dividends declared. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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Assets. Dec. 31, 20Y9. Dec.31, 20Y8

Cash	$155,000	$150,000
Accounts Receivable	$450,000	$400,000
Inventories	$770,000	$750,000
Investments	0	$100,000
Land	$500,000	0
Equipment	$1,400,000	$1,200,000
Accumulated Depreciation Equipment	($600,000)	($500,000)
Total Assets	$2, 675,000	$ 2,100,000

Liabilities/Stockers

Liability. Dec. 31, 20Y9 Dec.31, 20Y8

Accounts Payable	$340,000	$300,000
Accrued Expense Payable	$45,000	$50,000
Dividends Payable	$30,000	$ 25,000
Common Stock $4 par	$700,000	$ 600,000
Paid in Capital in excess of par-Common Stock	$200,000	$175,000
Retained Earnings	$ 1, 360,000	$ 950,000
Total Liabilities & Stockholders Equity	$ 2, 675,000.	$ 2, 100,000

Additional data obtained from an examination of the accounts in the ledger for 20Y7 are as follows:

The investments were sold for $175,000 cash.
Equipment and land were acquired for cash.
The common stock was issued for cash.
There was a $500,000 credit to retained earnings for net income.
There was $90,000 debit to retained earnings for cash dividends declared.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

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