create a statement of cash flows with the given information: Scruggs, Inc. Balance Sheet December 31, 2017 2016 Cash $17,000 $12,000 Account receivable 60,000 40,000 Inventory 84,000 70,000 Prepaid expenses 6,000 4,000 Property, Plant & Equipment 250,000 210,000 Accumulated depreciation (60,000) (48,000) $357,000 $288,000 Accounts payable $35,000 $40,000 Interest payable 3,000 4,000 Income taxes payable 22,000 12,000 Bonds payable (due in 2020) 90,000 64,000 Common Stock $5 par 95,000 80,000 Retained Earnings 112,000 88,000 $357,000 $288,000 Scruggs, Inc. Income Statement For Year Ended December 31, 2017 Net sales $590,000 Cost of goods sold 300,000 Gross profit 290,000 Depreciation expense 24,000 Other operating expenses 216,000 Loss on sale of equipment 6,000 Interest expense 7,000 Income tax expense 15,000 Total expenses 268,000 Gain on retirement of bonds 16,000 Net income $38,000 Additional Information a. Plant assets that cost $70,000 were purchased by paying $10,000 cash and issuing $60,000 of bonds payable. b. Plant assets with an original cost of $30,000 and accumulated depreciation of $12,000 were sold c. Bonds were retired by paying $18,000 cash. d. Common stock was sold for $15,000 cash. Prepare a complete cash flow statement using the indirect and direct methods.
create a statement of cash flows with the given information: Scruggs, Inc. Balance Sheet December 31, 2017 2016 Cash $17,000 $12,000 Account receivable 60,000 40,000 Inventory 84,000 70,000 Prepaid expenses 6,000 4,000 Property, Plant & Equipment 250,000 210,000 Accumulated depreciation (60,000) (48,000) $357,000 $288,000 Accounts payable $35,000 $40,000 Interest payable 3,000 4,000 Income taxes payable 22,000 12,000 Bonds payable (due in 2020) 90,000 64,000 Common Stock $5 par 95,000 80,000 Retained Earnings 112,000 88,000 $357,000 $288,000 Scruggs, Inc. Income Statement For Year Ended December 31, 2017 Net sales $590,000 Cost of goods sold 300,000 Gross profit 290,000 Depreciation expense 24,000 Other operating expenses 216,000 Loss on sale of equipment 6,000 Interest expense 7,000 Income tax expense 15,000 Total expenses 268,000 Gain on retirement of bonds 16,000 Net income $38,000 Additional Information a. Plant assets that cost $70,000 were purchased by paying $10,000 cash and issuing $60,000 of bonds payable. b. Plant assets with an original cost of $30,000 and accumulated depreciation of $12,000 were sold c. Bonds were retired by paying $18,000 cash. d. Common stock was sold for $15,000 cash. Prepare a complete cash flow statement using the indirect and direct methods.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 55PSA
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Question
create a statement of cash flows with the given information:
Scruggs, Inc. | |||||||
Balance Sheet | |||||||
December 31, | |||||||
2017 | 2016 | ||||||
Cash | $17,000 | $12,000 | |||||
60,000 | 40,000 | ||||||
Inventory | 84,000 | 70,000 | |||||
Prepaid expenses | 6,000 | 4,000 | |||||
Property, Plant & Equipment | 250,000 | 210,000 | |||||
Accumulated |
(60,000) | (48,000) | |||||
$357,000 | $288,000 | ||||||
Accounts payable | $35,000 | $40,000 | |||||
Interest payable | 3,000 | 4,000 | |||||
Income taxes payable | 22,000 | 12,000 | |||||
Bonds payable (due in 2020) | 90,000 | 64,000 | |||||
Common Stock $5 par | 95,000 | 80,000 | |||||
112,000 | 88,000 | ||||||
$357,000 | $288,000 | ||||||
Scruggs, Inc. | |||||||
Income Statement | |||||||
For Year Ended December 31, 2017 | |||||||
Net sales | $590,000 | ||||||
Cost of goods sold | 300,000 | ||||||
Gross profit | 290,000 | ||||||
Depreciation expense | 24,000 | ||||||
Other operating expenses | 216,000 | ||||||
Loss on sale of equipment | 6,000 | ||||||
Interest expense | 7,000 | ||||||
Income tax expense | 15,000 | ||||||
Total expenses | 268,000 | ||||||
Gain on retirement of bonds | 16,000 | ||||||
Net income | $38,000 | ||||||
Additional Information | |||||||
a. | Plant assets that cost $70,000 were purchased by paying | ||||||
$10,000 cash and issuing $60,000 of bonds payable. | |||||||
b. | Plant assets with an original cost of $30,000 and accumulated | ||||||
depreciation of $12,000 were sold | |||||||
c. | Bonds were retired by paying $18,000 cash. | ||||||
d. | Common stock was sold for $15,000 cash. | ||||||
Prepare a complete cash flow statement using the indirect and direct methods. |
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