Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $103 $32 Accounts receivable (net) 58 40 Inventories 37 22 Land 84 93 Equipment 47 35 Accumulated depreciation-equipment (13) (7) Total Assets $316 $215 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $40 $32 Dividends payable 6 Common stock, $1 par 21 10 Excess of paid-in capital over par 54 25 Retained earnings 195 148 Total liabilities and stockholders' equity $316 $215 The following additional information is taken from the records: 1. Land was sold for $23. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $68 credit to Retained Earnings for net income. 6. There was a $21 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $103 $32 Accounts receivable (net) 58 40 Inventories 37 22 Land 84 93 Equipment 47 35 Accumulated depreciation-equipment (13) (7) Total Assets $316 $215 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $40 $32 Dividends payable 6 Common stock, $1 par 21 10 Excess of paid-in capital over par 54 25 Retained earnings 195 148 Total liabilities and stockholders' equity $316 $215 The following additional information is taken from the records: 1. Land was sold for $23. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. 5. There was a $68 credit to Retained Earnings for net income. 6. There was a $21 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect method of presenting Cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 13.3BE

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