The following balance sheets were taken from the records of Blalock Company: Blalock Company Comparative Balance Sheets At December 31, 20X1 and 20X2 1 20X1 20X2 2 Assets 3 Cash $150,000.00 $185,000.00 4 Accounts receivable 70,000.00 80,000.00 5 Investments 0.00 30,000.00 6 Plant and equipment 100,000.00 105,000.00 7 Accumulated depreciation (30,000.00) (32,000.00) 8 Land 20,000.00 30,000.00 9 Total assets $310,000.00 $398,000.00 10 Liabilities and equity 11 Accounts payable $40,000.00 $50,000.00 12 Bonds payable 60,000.00 0.00 13 Mortgage payable 0.00 50,000.00 14 Preferred stock 20,000.00 0.00 15 Common stock 100,000.00 160,000.00 16 Retained earnings 90,000.00 138,000.00 17 Total liabilities and equity $310,000.00 $398,000.00 Additional transactions were as follows: A. Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000. B. Retired bonds at a price of $60,000 on December 31. C. Earned net income for the year of $68,000; paid cash dividends of $20,000. Required: Prepare a statement of cash flows using the worksheet approach. Use the indirect method to prepare the statement.
The following balance sheets were taken from the records of Blalock Company: Blalock Company Comparative Balance Sheets At December 31, 20X1 and 20X2 1 20X1 20X2 2 Assets 3 Cash $150,000.00 $185,000.00 4 Accounts receivable 70,000.00 80,000.00 5 Investments 0.00 30,000.00 6 Plant and equipment 100,000.00 105,000.00 7 Accumulated depreciation (30,000.00) (32,000.00) 8 Land 20,000.00 30,000.00 9 Total assets $310,000.00 $398,000.00 10 Liabilities and equity 11 Accounts payable $40,000.00 $50,000.00 12 Bonds payable 60,000.00 0.00 13 Mortgage payable 0.00 50,000.00 14 Preferred stock 20,000.00 0.00 15 Common stock 100,000.00 160,000.00 16 Retained earnings 90,000.00 138,000.00 17 Total liabilities and equity $310,000.00 $398,000.00 Additional transactions were as follows: A. Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000. B. Retired bonds at a price of $60,000 on December 31. C. Earned net income for the year of $68,000; paid cash dividends of $20,000. Required: Prepare a statement of cash flows using the worksheet approach. Use the indirect method to prepare the statement.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.19P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...
Related questions
Question
The following balance sheets were taken from the records of Blalock Company:
Blalock Company
|
Comparative Balance Sheets
|
At December 31, 20X1 and 20X2
|
1
|
|
20X1
|
20X2
|
2
|
Assets
|
|
|
3
|
Cash
|
$150,000.00
|
$185,000.00
|
4
|
|
70,000.00
|
80,000.00
|
5
|
Investments
|
0.00
|
30,000.00
|
6
|
Plant and equipment
|
100,000.00
|
105,000.00
|
7
|
Accumulated
|
(30,000.00)
|
(32,000.00)
|
8
|
Land
|
20,000.00
|
30,000.00
|
9
|
Total assets
|
$310,000.00
|
$398,000.00
|
10
|
Liabilities and equity
|
|
|
11
|
Accounts payable
|
$40,000.00
|
$50,000.00
|
12
|
Bonds payable
|
60,000.00
|
0.00
|
13
|
Mortgage payable
|
0.00
|
50,000.00
|
14
|
Preferred stock
|
20,000.00
|
0.00
|
15
|
Common stock
|
100,000.00
|
160,000.00
|
16
|
|
90,000.00
|
138,000.00
|
17
|
Total liabilities and equity
|
$310,000.00
|
$398,000.00
|
Additional transactions were as follows:
A. | Sold equipment costing $12,000, with accumulated depreciation of $9,000, for $2,000. |
B. | Retired bonds at a price of $60,000 on December 31. |
C. | Earned net income for the year of $68,000; paid cash dividends of $20,000. |
Required:
Prepare a statement of cash flows using the worksheet approach. Use the indirect method to prepare the statement. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning