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(b) The comparative balance shects for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 Tk. 71,000 2018 Cash Tk 45,000 62,000 142,000 Accounts receivable Inventory Prepaid expenses Land 44,000 151,450 15,280 105,000 228,000 21,000 130,000 Equipment Accumulated depreciation equipment Building Accumulated depreciation-building 155,000 (45,000) 200,000 (35,000) 200,000 (60,000) Tk. 709,730 Tk.680,000 (40,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, Si par Retained earnings Total Tk. 47,730 Tk. 40,000 300,000 160,000 180,000 Tk. 680,000 260,000 200,000 202,000 Tk. 709,730 Additional information: 1. Operating expenses inelude depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31. 2019, using the indirect method. 04

(b) The comparative balance shects for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 Tk. 71,000 2018 Cash Tk 45,000 62,000 142,000 Accounts receivable Inventory Prepaid expenses Land 44,000 151,450 15,280 105,000 228,000 21,000 130,000 Equipment Accumulated depreciation equipment Building Accumulated depreciation-building 155,000 (45,000) 200,000 (35,000) 200,000 (60,000) Tk. 709,730 Tk.680,000 (40,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, Si par Retained earnings Total Tk. 47,730 Tk. 40,000 300,000 160,000 180,000 Tk. 680,000 260,000 200,000 202,000 Tk. 709,730 Additional information: 1. Operating expenses inelude depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31. 2019, using the indirect method. 04

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 20P
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(b) The comparative balance shects for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 Tk. 71,000 2018 Cash Tk 45,000 62,000 142,000 Accounts receivable Inventory Prepaid expenses Land 44,000 151,450 15,280 105,000 228,000 21,000 130,000 Equipment Accumulated depreciation equipment Building Accumulated depreciation-building 155,000 (45,000) 200,000 (35,000) 200,000 (60,000) Tk. 709,730 Tk.680,000 (40,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, Si par Retained earnings Total Tk. 47,730 Tk. 40,000 300,000 160,000 180,000 Tk. 680,000 260,000 200,000 202,000 Tk. 709,730 Additional information: 1. Operating expenses inelude depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31. 2019, using the indirect method. 04
Transcribed Image Text:(b) The comparative balance shects for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 Tk. 71,000 2018 Cash Tk 45,000 62,000 142,000 Accounts receivable Inventory Prepaid expenses Land 44,000 151,450 15,280 105,000 228,000 21,000 130,000 Equipment Accumulated depreciation equipment Building Accumulated depreciation-building 155,000 (45,000) 200,000 (35,000) 200,000 (60,000) Tk. 709,730 Tk.680,000 (40,000) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, Si par Retained earnings Total Tk. 47,730 Tk. 40,000 300,000 160,000 180,000 Tk. 680,000 260,000 200,000 202,000 Tk. 709,730 Additional information: 1. Operating expenses inelude depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31. 2019, using the indirect method. 04
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