The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 2018 Cash Tk. 71,000 44,000 151,450 15,280 Tk.45,000 62,000 142,000 21,000 130,000 155,000 (35,000) 200,000 (40,000) Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building 105,000 228,000 (45,000) 200,000 (60,000) Tk. 709,730 Total Tk.680,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total Tk. 47,730 260,000 Tk. 40,000 300,000 200,000 202,000 Tk. 709,730 Tk. 680,000 160,000 180,000 Additional information: 1. Operating expenses include depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method.
The comparative balance sheets for Ramirez Company as of December 31 are presented: RAMIREZ COMPANY Comparative Balance Sheets December 31 Assets 2019 2018 Cash Tk. 71,000 44,000 151,450 15,280 Tk.45,000 62,000 142,000 21,000 130,000 155,000 (35,000) 200,000 (40,000) Accounts receivable Inventory Prepaid expenses Land Equipment Accumulated depreciation-equipment Building Accumulated depreciation-building 105,000 228,000 (45,000) 200,000 (60,000) Tk. 709,730 Total Tk.680,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total Tk. 47,730 260,000 Tk. 40,000 300,000 200,000 202,000 Tk. 709,730 Tk. 680,000 160,000 180,000 Additional information: 1. Operating expenses include depreciation expense of Tk. 42,000 and charges from prepaid expenses of Tk. 5,720. 2. Land was sold for cash at book value. 3. Cash dividends of Tk. 15,000 were paid. 4. Net income for 2019 was Tk. 37,000. 5. Equipment was purchased for Tk. 95,000 cash. In addition, equipment costing Tk. 22,000 with a book value of Tk. 10,000 was sold for Tk. 6,000 cash. 6. Bonds were converted at face value by issuing 40,000 shares of Tk. 1 par value common stock. Instructions Prepare a statement of cash flows for the year ended December 31, 2019, using the indirect method.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4PB
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