Condensed comparative balance sheets of Breach Company at December 31, Years 1 and 2, are as follows: Year 2 Year 1 Cash $170,000 $74,000 Accounts receivable (net) 78,000 85,000 Inventories 106,500 90,000 Equipment 395,000 370,000 Accumulated depreciation (195,000) (158,000) Total assets $554,500 $461,000 Accounts payable (merchandise creditors) $51,000 $50,000 Taxes payable 2,500 5,000 Common stock, $10 par 262,000 230,000 Retained earnings 239,000 176,000 Total liabilities and stockholders' equity $554,500 $461,000 In addition, assume: • Equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. • Stock was issued for cash—3,200 shares at par. • Net income for the current year was $76,000. • Cash dividends declared and paid were $13,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Breach CompanyStatement of Cash FlowsFor the Year Ended December 31, Year 2 Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank blank - Select - Changes in current operating assets and liabilities: blank blank - Select - - Select - blank - Select - - Select - blank $- Select - Cash flows from (used for) investing activities: $- Select - - Select - Cash flows from (used for) financing activities: $- Select - - Select - - Select - $- Select - Cash balance, January 1, Year 2 fill in the blank 27 Cash balance December 31, Year 2 $fill in the blank 28
Condensed comparative balance sheets of Breach Company at December 31, Years 1 and 2, are as follows: Year 2 Year 1 Cash $170,000 $74,000 Accounts receivable (net) 78,000 85,000 Inventories 106,500 90,000 Equipment 395,000 370,000 Accumulated depreciation (195,000) (158,000) Total assets $554,500 $461,000 Accounts payable (merchandise creditors) $51,000 $50,000 Taxes payable 2,500 5,000 Common stock, $10 par 262,000 230,000 Retained earnings 239,000 176,000 Total liabilities and stockholders' equity $554,500 $461,000 In addition, assume: • Equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. • Stock was issued for cash—3,200 shares at par. • Net income for the current year was $76,000. • Cash dividends declared and paid were $13,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Breach CompanyStatement of Cash FlowsFor the Year Ended December 31, Year 2 Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank blank - Select - Changes in current operating assets and liabilities: blank blank - Select - - Select - blank - Select - - Select - blank $- Select - Cash flows from (used for) investing activities: $- Select - - Select - Cash flows from (used for) financing activities: $- Select - - Select - - Select - $- Select - Cash balance, January 1, Year 2 fill in the blank 27 Cash balance December 31, Year 2 $fill in the blank 28
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 2PA: Financial statements The assets and liabilities of Global Travel Agency on December 31, 20Y5, and...
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Condensed comparative balance sheets of Breach Company at December 31, Years 1 and 2, are as follows:
Year 2Year 1Cash $170,000$74,000Accounts receivable (net) 78,00085,000Inventories 106,50090,000Equipment 395,000370,000Accumulated depreciation (195,000)(158,000)Total assets $554,500$461,000Accounts payable (merchandise creditors) $51,000$50,000Taxes payable 2,5005,000Common stock, $10 par 262,000230,000Retained earnings 239,000176,000Total liabilities and stockholders' equity $554,500$461,000In addition, assume:
• Equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. • Stock was issued for cash—3,200 shares at par. • Net income for the current year was $76,000. • Cash dividends declared and paid were $13,000. Prepare a statement of
cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.Cash flows from (used for) operating activities: $- Select - Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank blank - Select - Changes in current operating assets and liabilities: blank blank - Select - - Select - blank - Select - - Select - blank $- Select - Cash flows from (used for) investing activities: $- Select - - Select - Cash flows from (used for) financing activities: $- Select - - Select - - Select - $- Select - Cash balance, January 1, Year 2 fill in the blank 27 Cash balance December 31, Year 2 $fill in the blank 28
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