PROBLEM 3 A comparative balance sheet for Rocker Company appears below: ROCKER COMPANY Comparative Balance Sheet Dec. 31, 2016 Assets $11,000 Cash Accounts receivable 13,000 Inventory 17,000 Prepaid expenses 9,000 Long-term investments 17,000 Equipment 33,000 (15,000) Accumulated depreciation equipment Total assets $123.000 $85.000 Liabilities and Stockholders' Equity $ 17,000 $ 7,000 Accounts payable Bonds payable Common stock 36,000 45,000 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and stockholders' equity $123.000 $85.000 Additional information: 1. Net income for the year ending December 31, 2017, was $35,000. 2. Cash dividends of $15,000 were declared and paid during the year. 3. Long-term investments that had a cost of $17,000 were sold for $14,000. 4. No equipment was sold during 2017. Instructions Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. Dec. 31, 2017 $ 34,000 18,000 25,000 6,000 -0- 60,000 (20,000)
PROBLEM 3 A comparative balance sheet for Rocker Company appears below: ROCKER COMPANY Comparative Balance Sheet Dec. 31, 2016 Assets $11,000 Cash Accounts receivable 13,000 Inventory 17,000 Prepaid expenses 9,000 Long-term investments 17,000 Equipment 33,000 (15,000) Accumulated depreciation equipment Total assets $123.000 $85.000 Liabilities and Stockholders' Equity $ 17,000 $ 7,000 Accounts payable Bonds payable Common stock 36,000 45,000 40,000 23,000 Retained earnings 30,000 10,000 Total liabilities and stockholders' equity $123.000 $85.000 Additional information: 1. Net income for the year ending December 31, 2017, was $35,000. 2. Cash dividends of $15,000 were declared and paid during the year. 3. Long-term investments that had a cost of $17,000 were sold for $14,000. 4. No equipment was sold during 2017. Instructions Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. Dec. 31, 2017 $ 34,000 18,000 25,000 6,000 -0- 60,000 (20,000)
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 18EX
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