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The comparative balance sheets and income statements for Gypsy Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets S 32,500 4,750 11,200 45,000 (17,800) 28,000 $ 16,300 2,800 9,800 52,000 (21,800) 12,000 Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets S103,650 S 71,100 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity $ 3,750 5,800 47,000 47,100 S 4,900 7,800 25,000 33,400 $103,650 S 71,100 Income Statement For the Year Ended December 31, Year 2 S 61,200 (24,500) Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land 36,700 (12,000) 24,700 1,500 | (100) S 26,100 Net income Additional Data 1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. 3. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. Required Prepare a statement of cash flows using the indirect method (don't forget the supplementary noncash activities shown after the statement).

The comparative balance sheets and income statements for Gypsy Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets S 32,500 4,750 11,200 45,000 (17,800) 28,000 $ 16,300 2,800 9,800 52,000 (21,800) 12,000 Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets S103,650 S 71,100 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity $ 3,750 5,800 47,000 47,100 S 4,900 7,800 25,000 33,400 $103,650 S 71,100 Income Statement For the Year Ended December 31, Year 2 S 61,200 (24,500) Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land 36,700 (12,000) 24,700 1,500 | (100) S 26,100 Net income Additional Data 1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. 3. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. Required Prepare a statement of cash flows using the indirect method (don't forget the supplementary noncash activities shown after the statement).

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter14: Statement Of Cash Flows (cashflow)
Section: Chapter Questions
Problem 1R: The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal...
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The comparative balance sheets and income statements for Gypsy Company follow:

Additional Data

  1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale.
  2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss.
  3. Also, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange.


 

Required
Prepare a statement of cash flows using the indirect method (don’t forget the supplementary noncash activities shown after the statement).

The comparative balance sheets and income statements for Gypsy Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment S 32,500 4,750 11,200 45,000 (17,800) 28,000 S 16,300 2,800 9,800 52,000 (21,800) 12,000 S 71,100 Land Total assets S103,650 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity S 3,750 5,800 47,000 47,100 $ 4,900 7,800 25,000 33,400 $103,650 S 71,100 Income Statement For the Year Ended December 31, Year 2 S 61,200 (24,500) 36,700 (12,000) 24,700 1,500 | (100) S 26,100 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income Additional Data 1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. 3. Álso, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. Required Prepare a statement of cash flows using the indirect method (don't forget the supplementary noncash activities shown after the statement).
Transcribed Image Text:The comparative balance sheets and income statements for Gypsy Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment S 32,500 4,750 11,200 45,000 (17,800) 28,000 S 16,300 2,800 9,800 52,000 (21,800) 12,000 S 71,100 Land Total assets S103,650 Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity S 3,750 5,800 47,000 47,100 $ 4,900 7,800 25,000 33,400 $103,650 S 71,100 Income Statement For the Year Ended December 31, Year 2 S 61,200 (24,500) 36,700 (12,000) 24,700 1,500 | (100) S 26,100 Sales revenue Cost of goods sold Gross margin Depreciation expense Operating income Gain on sale of equipment Loss on disposal of land Net income Additional Data 1. During Year 2, the company sold equipment for $21,500; it had originally cost $36,000. Accumulated depreciation on this equipment was $16,000 at the time of the sale. 2. The company sold land that had cost $6,000. This land was sold for $5,900, resulting in the recognition of a $100 loss. 3. Álso, common stock was issued in exchange for title to land that was valued at $22,000 at the time of exchange. Required Prepare a statement of cash flows using the indirect method (don't forget the supplementary noncash activities shown after the statement).
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