Homework Help is Here – Start Your Trial Now!
Business
Accounting
II -Here are comparative balance sheets for Obaid Company. Obaid Company Comparative Balance Sheets December 31 Assets 2021 2020 Cash $ 85,000 $ 22,000 Accounts receivable 85,000 76,000 Inventory 175,000 189,000 Land 80,000 100,000 Equipment 250,000 200,000 Accumulated depreciation – equipment (61,000) (32,000) Total $ 614,000 $ 555,000 Liabilities and Stockholders’ Equity Accounts payable $ 39,000 $ 47,000 Bonds payable 150,000 200,000 Common stock ($1 par) 226,000 174,000 Retained earnings 199,000 134,000 Total $ 614,000 $ 555,000 Additional information: (1). Net income for 2021 was $99,000. (2). Cash dividends of $34,000 were declared and paid. (3). Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4 (4). Common stock was issued for $52,000 cash. (5). No equipment was sold during 2021, but land was sold at cost. Instructions Prepare a statement of cash flows for 2021 using the indirect method.

II -Here are comparative balance sheets for Obaid Company. Obaid Company Comparative Balance Sheets December 31 Assets 2021 2020 Cash $ 85,000 $ 22,000 Accounts receivable 85,000 76,000 Inventory 175,000 189,000 Land 80,000 100,000 Equipment 250,000 200,000 Accumulated depreciation – equipment (61,000) (32,000) Total $ 614,000 $ 555,000 Liabilities and Stockholders’ Equity Accounts payable $ 39,000 $ 47,000 Bonds payable 150,000 200,000 Common stock ($1 par) 226,000 174,000 Retained earnings 199,000 134,000 Total $ 614,000 $ 555,000 Additional information: (1). Net income for 2021 was $99,000. (2). Cash dividends of $34,000 were declared and paid. (3). Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4 (4). Common stock was issued for $52,000 cash. (5). No equipment was sold during 2021, but land was sold at cost. Instructions Prepare a statement of cash flows for 2021 using the indirect method.

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 16.3BPE: Changes in current operating assets and liabilities-indirect method Huluduey Corporations...
See similar textbooks
icon
Related questions
Topic Video
Question
Q 11 -Here are comparative balance sheets for Obaid Company. Obaid Company Comparative Balance Sheets December 31 Assets 2021 2020 Cash $ 85,000 $ 22,000 Accounts receivable 85,000 76,000 Inventory 175,000 189,000 Land 80,000 100,000 Equipment 250,000 200,000 Accumulated depreciation – equipment (61,000) (32,000) Total $ 614,000 $ 555,000 Liabilities and Stockholders’ Equity Accounts payable Bonds payable $ 39,000 $ 47,000 150,000 200,000 Common stock ($1 par) 226,000 174,000 Retained earnings 199,000 134,000 Total $ 614,000 $ 555,000 Additional information: (1). Net income for 2021 was $99,000. (2). Cash dividends of $34,000 were declared and paid. (3). Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4 (4). Common stock was issued for $52,000 cash. (5). No equipment was sold during 2021, but land was sold at cost. Instructions Prepare a statement of cash flows for 2021 using the indirect method.
Transcribed Image Text:Q 11 -Here are comparative balance sheets for Obaid Company. Obaid Company Comparative Balance Sheets December 31 Assets 2021 2020 Cash $ 85,000 $ 22,000 Accounts receivable 85,000 76,000 Inventory 175,000 189,000 Land 80,000 100,000 Equipment 250,000 200,000 Accumulated depreciation – equipment (61,000) (32,000) Total $ 614,000 $ 555,000 Liabilities and Stockholders’ Equity Accounts payable Bonds payable $ 39,000 $ 47,000 150,000 200,000 Common stock ($1 par) 226,000 174,000 Retained earnings 199,000 134,000 Total $ 614,000 $ 555,000 Additional information: (1). Net income for 2021 was $99,000. (2). Cash dividends of $34,000 were declared and paid. (3). Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4 (4). Common stock was issued for $52,000 cash. (5). No equipment was sold during 2021, but land was sold at cost. Instructions Prepare a statement of cash flows for 2021 using the indirect method.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS