Presented below are data taken from the records of Sheffield Company. December 31, 2020 December 31, 2019 Cash $15,100 $7,900 Current assets other than cash 85,800 59,800 Long-term investments 10,100 53,000 Plant assets 335,200 214,500 $446,200 $335,200 Accumulated depreciation $20,200 $40,200 Current liabilities 39,600 22,000 Bonds payable 75,800 –0– Common stock 252,800 252,800 Retained earnings 57,800 20,200 $446,200 $335,200 Additional information: 1. Held-to-maturity debt securities carried at a cost of $42,900 on December 31, 2019, were sold in 2020 for $33,600. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $49,600 and were 80% depreciated were sold during 2020 for $7,900. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $56,500. 4. Dividends paid amounted to $7,580. 5. Depreciation charged for the year was $19,680. Prepare a statement of cash flows for the year 2020 using the indirect method. (Show amounts that decrease cash flow with
Presented below are data taken from the records of Sheffield Company. December 31, 2020 December 31, 2019 Cash $15,100 $7,900 Current assets other than cash 85,800 59,800 Long-term investments 10,100 53,000 Plant assets 335,200 214,500 $446,200 $335,200 Accumulated depreciation $20,200 $40,200 Current liabilities 39,600 22,000 Bonds payable 75,800 –0– Common stock 252,800 252,800 Retained earnings 57,800 20,200 $446,200 $335,200 Additional information: 1. Held-to-maturity debt securities carried at a cost of $42,900 on December 31, 2019, were sold in 2020 for $33,600. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $49,600 and were 80% depreciated were sold during 2020 for $7,900. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $56,500. 4. Dividends paid amounted to $7,580. 5. Depreciation charged for the year was $19,680. Prepare a statement of cash flows for the year 2020 using the indirect method. (Show amounts that decrease cash flow with
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 7E
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Question
Presented below are data taken from the records of Sheffield Company.
December 31,
2020 |
December 31,
2019 |
|||
Cash |
$15,100
|
$7,900
|
||
Current assets other than cash |
85,800
|
59,800
|
||
Long-term investments |
10,100
|
53,000
|
||
Plant assets |
335,200
|
214,500
|
||
$446,200
|
$335,200
|
|||
$20,200
|
$40,200
|
|||
Current liabilities |
39,600
|
22,000
|
||
Bonds payable |
75,800
|
–0–
|
||
Common stock |
252,800
|
252,800
|
||
57,800
|
20,200
|
|||
$446,200
|
$335,200
|
Additional information:
1. | Held-to-maturity debt securities carried at a cost of $42,900 on December 31, 2019, were sold in 2020 for $33,600. The loss (not unusual) was incorrectly charged directly to Retained Earnings. | |
2. | Plant assets that cost $49,600 and were 80% |
|
3. | Net income as reported on the income statement for the year was $56,500. | |
4. | Dividends paid amounted to $7,580. | |
5. | Depreciation charged for the year was $19,680. |
Prepare a statement of cash flows for the year 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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