Prepare a Statement of Cash Flows for the year ended Dec. 31, 2019, using the indirect method. Cash balance at prior year-end​​$42,000​Gain on sale of machinery​​$2,000​ Increase in inventory​​​$6,000​​Cash received from sale of machinery​$9,500 Depreciation expense​​​$4,000​​Increase in accounts payable​​$2,500 Cash received from issuing stock​$6,000​​Net income​​​​$23,000 Cash paid for dividends                              $1,000                 Decrease in accounts receivable​​$3,000 We bought a car for $40,000, nothing down, and signed a 4 year note for $40,000 to pay for it. Be sure to include totals for cash from operations, investing and financing.  Include what you think the cash balance on Dec. 31, 2019 is. Assume that we bought the car by signing the note on December 31, so there was no interest.

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 37P
icon
Related questions
icon
Concept explainers
Topic Video
Question

Prepare a Statement of Cash Flows for the year ended Dec. 31, 2019, using the indirect method.

Cash balance at prior year-end​​$42,000​Gain on sale of machinery​​$2,000​

Increase in inventory​​​$6,000​​Cash received from sale of machinery​$9,500

Depreciation expense​​​$4,000​​Increase in accounts payable​​$2,500

Cash received from issuing stock​$6,000​​Net income​​​​$23,000

Cash paid for dividends                              $1,000                 Decrease in accounts receivable​​$3,000

We bought a car for $40,000, nothing down, and signed a 4 year note for $40,000 to pay for it.

Be sure to include totals for cash from operations, investing and financing.  Include what you think the cash balance on Dec. 31, 2019 is.

Assume that we bought the car by signing the note on December 31, so there was no interest.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 4 images

Blurred answer
Knowledge Booster
Financial Statements
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
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning