The comparative balance sheets for Naomi Corporation show the following information: 2021 2020 Cash $24,400 $20,700 Accounts receivable, net 43,300 20,300 Inventory 40,000 42,000 Investments 20,000 15,000 Building 160,000 100,000 Accumulated depreciation – building (27,700) (20,000) Equipment 61,500 50,000 Accumulated depreciation - equipment (10,000) (17,500) Total $311,500 $210,500 Accounts payable $17,000 $26,500 Salaries payable 21,000 17,000 Long-term notes payable 100,000 50,000 Common stock 110,000 90,000 Retained earnings 63,500 27,000 Total $311,500 $210,500 Additional data related to 2021 are as follows: $10,000 of the long-term note payable was paid by cash. Equipment that had cost $15,000 and had accumulated depreciation of 9,500 at time of disposal was sold for $4,000 in cash. Common stock was issued in exchange for $20,000 cash. Cash dividends were paid. Investments were purchased for $5,000 in cash. Cash of $26,500 was paid for the acquisition of equipment. A long-term note for $60,000 was issued for the acquisition of a building. Depreciation expense for the year is $9,700. Net Income for the year is $56,000. Required: Prepare a statement of cash flows, using the indirect method. Include all required disclosures.
The comparative balance sheets for Naomi Corporation show the following information: 2021 2020 Cash $24,400 $20,700 Accounts receivable, net 43,300 20,300 Inventory 40,000 42,000 Investments 20,000 15,000 Building 160,000 100,000 Accumulated depreciation – building (27,700) (20,000) Equipment 61,500 50,000 Accumulated depreciation - equipment (10,000) (17,500) Total $311,500 $210,500 Accounts payable $17,000 $26,500 Salaries payable 21,000 17,000 Long-term notes payable 100,000 50,000 Common stock 110,000 90,000 Retained earnings 63,500 27,000 Total $311,500 $210,500 Additional data related to 2021 are as follows: $10,000 of the long-term note payable was paid by cash. Equipment that had cost $15,000 and had accumulated depreciation of 9,500 at time of disposal was sold for $4,000 in cash. Common stock was issued in exchange for $20,000 cash. Cash dividends were paid. Investments were purchased for $5,000 in cash. Cash of $26,500 was paid for the acquisition of equipment. A long-term note for $60,000 was issued for the acquisition of a building. Depreciation expense for the year is $9,700. Net Income for the year is $56,000. Required: Prepare a statement of cash flows, using the indirect method. Include all required disclosures.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter21: The Statement Of Cash Flows
Section: Chapter Questions
Problem 9E: Partially Completed Spreadsheet Hanks Company has prepared the following changes in account balances...
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Question
- The comparative balance sheets for Naomi Corporation show the following information:
|
2021 |
|
2020 |
|
|
|
|
Cash |
$24,400 |
|
$20,700 |
Accounts receivable, net |
43,300 |
|
20,300 |
Inventory |
40,000 |
|
42,000 |
Investments |
20,000 |
|
15,000 |
Building |
160,000 |
|
100,000 |
Accumulated |
(27,700) |
|
(20,000) |
Equipment |
61,500 |
|
50,000 |
Accumulated depreciation - equipment |
(10,000) |
|
(17,500) |
Total |
$311,500 |
|
$210,500 |
|
|
|
|
Accounts payable |
$17,000 |
|
$26,500 |
Salaries payable |
21,000 |
|
17,000 |
Long-term notes payable |
100,000 |
|
50,000 |
Common stock |
110,000 |
|
90,000 |
|
63,500 |
|
27,000 |
Total |
$311,500 |
|
$210,500 |
Additional data related to 2021 are as follows:
- $10,000 of the long-term note payable was paid by cash.
- Equipment that had cost $15,000 and had accumulated depreciation of 9,500 at time of disposal was sold for $4,000 in cash.
- Common stock was issued in exchange for $20,000 cash.
- Cash dividends were paid.
- Investments were purchased for $5,000 in cash.
- Cash of $26,500 was paid for the acquisition of equipment.
- A long-term note for $60,000 was issued for the acquisition of a building.
- Depreciation expense for the year is $9,700.
- Net Income for the year is $56,000.
Required:
Prepare a statement of
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