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The net changes in the statement of financial position accounts of Solar Services, Inc. for the year 2016 are shown below: Account Debit Credit Cash $ 125,600 Accounts receivable 64,000 Allowance for doubtful 14,000 accounts Inventory 217,200 Prepaid expenses 30,000 Long-term investments Land 144,000 300,000 Buildings 600,000 Machinery Office equipment Accumulated depreciation: 100,000 28,000 Buildings 24,000 Machinery Office equipment Accounts payable 20,000 12,000 183,200 Accrued liabilities 72,000 Dividends payable Bonds payable Share capital-Preference ($50 128,000 832,000 60,000 par) Share capital-ordinary ($10 par) Share premium-ordinary Retained earning 379,200 223,200 77,200 Additional information: 1. Net income for 2016 $150,000 2. Cash dividends of $128,000 were declared December 15, 2016, payable January 15, 2017. A 5% share dividend was issued March 31, 2016, when the fair value was $22.00 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The company exchanged an old machine which has a cost of $60,000 and an accumulated depreciation of $40,000 with a new machine with a fair value of $160,000. The company paid $140,000 cash in relation to the exchange. 6. A fully depreciated printing machine which cost $28,000 was written off. 7. Preference shares of $60,000 par value were called for $80,000. 8. The company sold 12,000 shares of its ordinary share (no par) during 2016 for $25 a share. There were 87,600 shares outstanding on December 31, 2016. 9. Bonds were sold at 104 on December 31, 2016. 10. Land was sold for $108,000. It had a book value of $240,000 Required: For Solar Services Inc.: Prepare the Cash Flow Statement for 2016 in the correct format using the indirect method

The net changes in the statement of financial position accounts of Solar Services, Inc. for the year 2016 are shown below: Account Debit Credit Cash $ 125,600 Accounts receivable 64,000 Allowance for doubtful 14,000 accounts Inventory 217,200 Prepaid expenses 30,000 Long-term investments Land 144,000 300,000 Buildings 600,000 Machinery Office equipment Accumulated depreciation: 100,000 28,000 Buildings 24,000 Machinery Office equipment Accounts payable 20,000 12,000 183,200 Accrued liabilities 72,000 Dividends payable Bonds payable Share capital-Preference ($50 128,000 832,000 60,000 par) Share capital-ordinary ($10 par) Share premium-ordinary Retained earning 379,200 223,200 77,200 Additional information: 1. Net income for 2016 $150,000 2. Cash dividends of $128,000 were declared December 15, 2016, payable January 15, 2017. A 5% share dividend was issued March 31, 2016, when the fair value was $22.00 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The company exchanged an old machine which has a cost of $60,000 and an accumulated depreciation of $40,000 with a new machine with a fair value of $160,000. The company paid $140,000 cash in relation to the exchange. 6. A fully depreciated printing machine which cost $28,000 was written off. 7. Preference shares of $60,000 par value were called for $80,000. 8. The company sold 12,000 shares of its ordinary share (no par) during 2016 for $25 a share. There were 87,600 shares outstanding on December 31, 2016. 9. Bonds were sold at 104 on December 31, 2016. 10. Land was sold for $108,000. It had a book value of $240,000 Required: For Solar Services Inc.: Prepare the Cash Flow Statement for 2016 in the correct format using the indirect method

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.8E
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The net changes in the statement of financial position accounts of Solar Services, Inc. for the year 2016 are shown below: Account Debit Credit Cash $ 125,600 Accounts receivable $ 64,000 Allowance for doubtful 14,000 accounts Inventory 217,200 Prepaid expenses 30,000 Long-term investments 144,000 Land 300,000 Buildings 600,000 Machinery Office equipment 100,000 28,000 Accumulated depreciation: Buildings 24,000 Machinery 20,000 Office equipment 12,000 Accounts payable 183,200 Accrued liabilities 72,000 Dividends payable 128,000 Bonds payable 832,000 Share capital-Preference ($50 60,000 par) Share capital-ordinary ($10 par) Share premium-ordinary 379,200 223,200 Retained earning 77,200 Additional information: 1. Net income for 2016 $150,000 2. Cash dividends of $128,000 were declared December 15, 2016, payable January 15, 2017. A 5% share dividend was issued March 31, 2016, when the fair value was $22.00 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The company exchanged an old machine which has a cost of $60,000 and an accumulated depreciation of $40,000 with a new machine with a fair value of $160,000. The company paid $140,000 cash in relation to the exchange. 6. A fully depreciated printing machine which cost $28,000 was written off. 7. Preference shares of $60,000 par value were called for $80,000. 8. The company sold 12,000 shares of its ordinary share (no par) during 2016 for $25 a share. There were 87,600 shares outstanding on December 31, 2016. 9. Bonds were sold at 104 on December 31, 2016. 10. Land was sold for $108,000. It had a book value of $240,000 Required: For Solar Services Inc.: Prepare the Cash Flow Statement for 2016 in the correct format using the indirect method
Transcribed Image Text:The net changes in the statement of financial position accounts of Solar Services, Inc. for the year 2016 are shown below: Account Debit Credit Cash $ 125,600 Accounts receivable $ 64,000 Allowance for doubtful 14,000 accounts Inventory 217,200 Prepaid expenses 30,000 Long-term investments 144,000 Land 300,000 Buildings 600,000 Machinery Office equipment 100,000 28,000 Accumulated depreciation: Buildings 24,000 Machinery 20,000 Office equipment 12,000 Accounts payable 183,200 Accrued liabilities 72,000 Dividends payable 128,000 Bonds payable 832,000 Share capital-Preference ($50 60,000 par) Share capital-ordinary ($10 par) Share premium-ordinary 379,200 223,200 Retained earning 77,200 Additional information: 1. Net income for 2016 $150,000 2. Cash dividends of $128,000 were declared December 15, 2016, payable January 15, 2017. A 5% share dividend was issued March 31, 2016, when the fair value was $22.00 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The company exchanged an old machine which has a cost of $60,000 and an accumulated depreciation of $40,000 with a new machine with a fair value of $160,000. The company paid $140,000 cash in relation to the exchange. 6. A fully depreciated printing machine which cost $28,000 was written off. 7. Preference shares of $60,000 par value were called for $80,000. 8. The company sold 12,000 shares of its ordinary share (no par) during 2016 for $25 a share. There were 87,600 shares outstanding on December 31, 2016. 9. Bonds were sold at 104 on December 31, 2016. 10. Land was sold for $108,000. It had a book value of $240,000 Required: For Solar Services Inc.: Prepare the Cash Flow Statement for 2016 in the correct format using the indirect method
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