exercise 12-7 Shown below are comparative balance sheets for Sandhill Company. Sandhill CompanyComparative Balance SheetsDecember 31 Assets 2017 2016 Cash $ 211,208 $ 68,332 Accounts receivable 273,328 236,056 Inventory 518,702 587,034 Land 248,480 310,600 Equipment 807,560 621,200 Accumulated depreciation—equipment (204,996 ) (99,392 ) Total $1,854,282 $1,723,830 Liabilities and Stockholders’ Equity Accounts payable $ 121,134 $ 133,558 Bonds payable 465,900 621,200 Common stock ($1 par) 670,896 540,444 Retained earnings 596,352 428,628 Total $1,854,282 $1,723,830 Additional information: 1. Net income for 2017 was $288,858. 2. Depreciation expense was $105,604. 3. Cash dividends of $121,134 were declared and paid. 4. Bonds payable amounting to $155,300 were redeemed for cash $155,300. 5. Common stock was issued for $130,452 cash. 6. No equipment was sold during 2017. 7. Land was sold for its book value. Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).
exercise 12-7
|
Sandhill Company
Comparative Balance Sheets December 31 |
||||||
|---|---|---|---|---|---|---|
|
Assets
|
2017
|
2016
|
||||
|
Cash
|
$ 211,208
|
$ 68,332
|
||||
|
Accounts receivable
|
273,328
|
236,056
|
||||
|
Inventory
|
518,702
|
587,034
|
||||
|
Land
|
248,480
|
310,600
|
||||
|
Equipment
|
807,560
|
621,200
|
||||
|
Accumulated depreciation—equipment
|
(204,996
|
)
|
(99,392
|
)
|
||
|
Total
|
$1,854,282
|
|
$1,723,830
|
|
||
|
Liabilities and Stockholders’ Equity
|
||||||
|
Accounts payable
|
$ 121,134
|
$ 133,558
|
||||
|
Bonds payable
|
465,900
|
621,200
|
||||
|
Common stock ($1 par)
|
670,896
|
540,444
|
||||
|
Retained earnings
|
596,352
|
|
428,628
|
|
||
|
Total
|
$1,854,282
|
|
$1,723,830
|
|
Additional information:
| 1. | Net income for 2017 was $288,858. | |
| 2. | Depreciation expense was $105,604. | |
| 3. | Cash dividends of $121,134 were declared and paid. | |
| 4. | Bonds payable amounting to $155,300 were redeemed for cash $155,300. | |
| 5. | Common stock was issued for $130,452 cash. | |
| 6. | No equipment was sold during 2017. | |
| 7. | Land was sold for its book value. |
Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000)).
Expert Answer
Related Accounting Q&A
Q: Walt Bach Company has accumulated the following budget data for the year 2019. Sales: 40000 units, ...
A: The budgeted income statement shows all the budgeted revenues and expenses for the period for which ...
Q: Exercise 9-16 The Blue Spruce Company is planning to purchase $496,800 of equipment with an estimat...
A: Payback period: Payback period is the anticipated time period which is required to recover the cost ...
Q: Coca Cola acquired 70% of Pepsi on 1/1/14. During 2014, Coca Cola made many inventory sales to Pepsi...
A: Click to see the answer
Q: Which of the following do not show up on a post-closing trial balance? Assets and liabilities ...
A: Post closing trial balance: The post closing trial balance is a summary of all ledger accounts, and ...
Q: Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been ex...
A: 1.Material price variance = (budgeted price-actual price)* actual quantity consumed=(5-4.95)*49,200=...
Q: Northwood Company manufactures basketballs. The company has a ball that sells for $35. At present, t...
A: Note: The answers provided by you for the first 3 requirements are correct. Hence, I am solving from...
Q: Work-in-Process Inventory, November 1 45,000 units Work-in-Process Inventory, November 30 23...
A: Units completed and transferred inventory:Units completed and transferred inventory represents the n...
Q: The setting of standard is a/ a worker decision b/ a management decision c/ a managerial accounting...
A: Setting Standard: Setting standard means establishing the level of performance on the basis of past ...
Q: Problem 25-2A Analysis and computation of payback period, accounting rate of return, and net present...
A: The Net Present Value of the Inflows have been computed by first computing the Net Cash inflow and t...
