The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows: An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4: a. Net income, $524,580. b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680. c. Patent amortization reported on the income statement, $5,040. d. A building was constructed for $579,600. e. A mortgage note for $224,000 was issued for cash. f. 30,000 shares of common stock were issued at $13 in exchange for the bonds payable. g. Cash dividends declared, $131,040. 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
Section
Chapter 16, Problem 2PB
Textbook Problem

The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows:

Chapter 16, Problem 2PB, The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as

An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4:

  1.        a.            Net income, $524,580.
  2.       b.            Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
  3.        c.            Patent amortization reported on the income statement, $5,040.
  4.       d.            A building was constructed for $579,600.
  5.        e.            A mortgage note for $224,000 was issued for cash.
  6.         f.            30,000 shares of common stock were issued at $13 in exchange for the bonds payable.
  7.       g.            Cash dividends declared, $131,040.

Instructions

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

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Chapter 16 Solutions

Financial Accounting
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