Condensed financial data of Larkspur, Inc. follow. Larkspur, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $105,900 $47,000 Accounts receivable 92,700 33,100 Inventory 112,800 101,000 Prepaid expenses 29,200 25,500 Long-term investments 139,400 114,200 Plant assets 274,500 241,400 Accumulated depreciation (46,800 ) (52,400 ) Total $707,700 $509,800 Liabilities and Stockholders’ Equity Accounts payable $111,900 $67,800 Accrued expenses payable 16,000 17,300 Bonds payable 117,200 149,500 Common stock 219,100 175,300 Retained earnings 243,500 99,900 Total $707,700 $509,800 Larkspur, Inc. Income Statement For the Year Ended December 31, 2022 Sales revenue $392,600 Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 11,700 Depreciation expense 32,300 Income tax expense 27,600 Interest expense 4,000 Loss on disposal of plant assets 7,500 219,100 Net income $173,500 Additional information: 1. New plant assets costing $81,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $47,900 and accumulated depreciation of $37,900 were sold for $2,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $29,900 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Condensed financial data of Larkspur, Inc. follow. Larkspur, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $105,900 $47,000 Accounts receivable 92,700 33,100 Inventory 112,800 101,000 Prepaid expenses 29,200 25,500 Long-term investments 139,400 114,200 Plant assets 274,500 241,400 Accumulated depreciation (46,800 ) (52,400 ) Total $707,700 $509,800 Liabilities and Stockholders’ Equity Accounts payable $111,900 $67,800 Accrued expenses payable 16,000 17,300 Bonds payable 117,200 149,500 Common stock 219,100 175,300 Retained earnings 243,500 99,900 Total $707,700 $509,800 Larkspur, Inc. Income Statement For the Year Ended December 31, 2022 Sales revenue $392,600 Less: Cost of goods sold $136,000 Operating expenses, excluding depreciation 11,700 Depreciation expense 32,300 Income tax expense 27,600 Interest expense 4,000 Loss on disposal of plant assets 7,500 219,100 Net income $173,500 Additional information: 1. New plant assets costing $81,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $47,900 and accumulated depreciation of $37,900 were sold for $2,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $29,900 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 103.4C
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Question
Condensed financial data of Larkspur, Inc. follow.
Larkspur, Inc.
Comparative Balance Sheets December 31 |
||||||
---|---|---|---|---|---|---|
Assets
|
2022
|
2021
|
||||
Cash
|
$105,900
|
$47,000
|
||||
Accounts receivable
|
92,700
|
33,100
|
||||
Inventory
|
112,800
|
101,000
|
||||
Prepaid expenses
|
29,200
|
25,500
|
||||
Long-term investments
|
139,400
|
114,200
|
||||
Plant assets
|
274,500
|
241,400
|
||||
Accumulated
|
(46,800
|
)
|
(52,400
|
)
|
||
Total
|
$707,700
|
$509,800
|
||||
Liabilities and
|
||||||
Accounts payable
|
$111,900
|
$67,800
|
||||
Accrued expenses payable
|
16,000
|
17,300
|
||||
Bonds payable
|
117,200
|
149,500
|
||||
Common stock
|
219,100
|
175,300
|
||||
|
243,500
|
99,900
|
||||
Total
|
$707,700
|
$509,800
|
Larkspur, Inc.
Income Statement For the Year Ended December 31, 2022 |
||||
---|---|---|---|---|
Sales revenue
|
$392,600 | |||
Less:
|
||||
Cost of goods sold
|
$136,000
|
|||
Operating expenses, excluding depreciation
|
11,700
|
|||
Depreciation expense
|
32,300
|
|||
Income tax expense
|
27,600
|
|||
Interest expense
|
4,000
|
|||
Loss on disposal of plant assets
|
7,500
|
219,100 | ||
Net income
|
$173,500
|
Additional information:
1. | New plant assets costing $81,000 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $47,900 and accumulated depreciation of $37,900 were sold for $2,500 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $29,900 was declared and paid during the year. |
Prepare a statement of
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