The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $190,000. b. Depreciation reported on the income statement, $115,000. c. Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 40,000 shares of common stock were issued at $15 for cash. f. Cash dividends declared and paid, $50,000. Instructions Prepare a statement of cash flows, using the indirect method.

BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124
BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124

Solutions

Chapter 16, Problem 2PA
Textbook Problem

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

Chapter 16, Problem 2PA, The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as , example  1

Chapter 16, Problem 2PA, The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as , example  2

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

  1.     a.          Net income, $190,000.
  2.     b.          Depreciation reported on the income statement, $115,000.
  3.     c.          Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 was discarded, with no salvage realized.
  4.     d.          The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
  5.     e.          40,000 shares of common stock were issued at $15 for cash.
  6.      f.          Cash dividends declared and paid, $50,000.

Instructions

Prepare a statement of cash flows, using the indirect method.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 16 Solutions

Financial Accounting
Ch. 16 - Identify whether each of the following would be...Ch. 16 - Identify whether each of the following would be...Ch. 16 - Ripley Corporations accumulated...Ch. 16 - Ya Wen Corporations accumulated...Ch. 16 - Zwilling Corporations comparative balance sheet...Ch. 16 - Huluduey Corporations comparative balance sheet...Ch. 16 - Demers Inc. reported the following data: Prepare...Ch. 16 - Staley Inc. reported the following data: Prepare...Ch. 16 - Simkin Corporation purchased land for 420,000....Ch. 16 - IZ Corporation purchased land for 400,000. Later...Ch. 16 - Sales reported on the income statement were...Ch. 16 - Sales reported on the income statement were...Ch. 16 - The cost of merchandise sold reported on the...Ch. 16 - The cost of merchandise sold reported on the...Ch. 16 - McMahon Inc. reported the following on the...Ch. 16 - Dillin Inc. reported the following on the companys...Ch. 16 - On its income statement for a recent year,...Ch. 16 - State the effect (cash receipt or payment and...Ch. 16 - Identify the type of cash flow activity for each...Ch. 16 - Indicate whether each of the following would be...Ch. 16 - The net income reported on the income statement...Ch. 16 - The net income reported on the income statement...Ch. 16 - The income statement disclosed the following items...Ch. 16 - The board of directors declared cash dividends...Ch. 16 - An analysis of the general ledger accounts...Ch. 16 - An analysis of the general ledger accounts...Ch. 16 - On the basis of the details of the following fixed...Ch. 16 - On the basis of the following stockholders equity...Ch. 16 - On the basis of the details of the following fixed...Ch. 16 - On the basis of the details of the following bonds...Ch. 16 - Curwen Inc. reported net cash flow from operating...Ch. 16 - Selected data derived from the income statement...Ch. 16 - The comparative balance sheet of Olson-Jones...Ch. 16 - The following statement of cash flows for Shasta...Ch. 16 - The cash flows from operating activities are...Ch. 16 - The cost of merchandise sold for Kohls Corporation...Ch. 16 - Selected data taken from the accounting records of...Ch. 16 - The income statement of Booker T Industries Inc....Ch. 16 - The income statement for Rhino Company for the...Ch. 16 - Sweeter Enterprises Inc. has cash flows from...Ch. 16 - The financial statements for Nike, Inc., are...Ch. 16 - Lovato Motors Inc. has cash flows from operating...Ch. 16 - The comparative balance sheet of Navaria Inc. for...Ch. 16 - The comparative balance sheet of Yellow Dog...Ch. 16 - The comparative balance sheet of Whitman Co. at...Ch. 16 - The comparative balance sheet of Canace Products...Ch. 16 - The comparative balance sheet of Navaria Inc. for...Ch. 16 - The comparative balance sheet of Merrick Equipment...Ch. 16 - The comparative balance sheet of Harris Industries...Ch. 16 - The comparative balance sheet of Coulson, Inc. at...Ch. 16 - The comparative balance sheet of Martinez Inc. for...Ch. 16 - The comparative balance sheet of Merrick Equipment...Ch. 16 - Lucas Hunter, president of Simmons Industries...Ch. 16 - Tidewater Inc., a retailer, provided the following...Ch. 16 - You are considering an investment in a new...Ch. 16 - Dillip Lachgar is the president and majority...

Additional Business Textbook Solutions

Find more solutions based on key concepts
How are inflation and unemployment related in the short run?

Principles of Microeconomics (MindTap Course List)

Why is productivity important?

Essentials of Economics (MindTap Course List)

What is a program version number?

Accounting Information Systems

Label the blanks in the column heads as either Debit or Credit.

College Accounting (Book Only): A Career Approach

Where should stock dividends distributable be reported on the balance sheet? Why?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

The president of Southern Semiconductor Corporation (SSC) made this statement in the companys annual report SSC...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)