The information below was taken from the records of the Piper Company for the year ended December 31, 2020: Acquisition of building $250,000 Amortization of premium on bonds payable 2,000 Decrease in deferred income tax liability 8,000 Decrease in inventories 6,000 Decrease in salaries payable 2,000 Depreciation expense 24,000 Dividends paid 11,000 Loss on sale of land 18,000 Increase in accounts payable 14,000 Increase in accounts receivable 5,000 Issuance of long-term bonds payable 150,000 Net income 240,000 Patent amortization expense 4,000 Preferred stock issued to convert bonds 50,000 Retirement of bonds 100,000 Proceeds from sale of land 80,000 Ending cash balance 400,000
The information below was taken from the records of the Piper Company for the year ended December 31, 2020: Acquisition of building $250,000 Amortization of premium on bonds payable 2,000 Decrease in deferred income tax liability 8,000 Decrease in inventories 6,000 Decrease in salaries payable 2,000 Depreciation expense 24,000 Dividends paid 11,000 Loss on sale of land 18,000 Increase in accounts payable 14,000 Increase in accounts receivable 5,000 Issuance of long-term bonds payable 150,000 Net income 240,000 Patent amortization expense 4,000 Preferred stock issued to convert bonds 50,000 Retirement of bonds 100,000 Proceeds from sale of land 80,000 Ending cash balance 400,000
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 45P
Related questions
Question
100%
Transcribed Image Text:Net income
240,000
Patent amortization expense
4,000
Preferred stock issued to convert bonds
50,000
Retirement of bonds
100,000
Proceeds from sale of land
80,000
Ending cash balance
400,000
Required:
Prepare Piper's statement of cash flows for 2020, using the indirect method.
Transcribed Image Text:The information below was taken from the records of the Piper Company for the year ended December 31, 2020:
Acquisition of building
$250,000
Amortization of premium on bonds payable
2,000
Decrease in deferred income tax liability
8,000
Decrease in inventories
6,000
Decrease in salaries payable
2,000
Depreciation expense
24,000
Dividends paid
11,000
Loss on sale of land
18,000
Increase in accounts payable
14,000
Increase in accounts receivable
5,000
Issuance of long-term bonds payable
150,000
Net income
240,000
Patent amortization expense
4,000
Preferred stock issued to convert bonds
50,000
Retirement of bonds
100,000
Proceeds from sale of land
80,000
Ending cash balance
400,000
Required:
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