Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 22, Problem 22.11E
Statement of Cash Flows, Indirect Method. Disclosures. Complete the requirements of E22-10 using the direct method.
Starland Corporation Balance Sheets At December 31 |
|||||
Assets | Current Year | Prior Year | |||
Current Assets | |||||
Cash | $ 270,001 | $ 145,847 | |||
Accounts Receivable - net | 268,363 | 255,368 | |||
Merchandise Inventory | 381,358 | 268,363 | |||
Prepaid Expenses | 55,000 | 75,000 | |||
Total Current Assets | $ 974,722 | $ 744,578 | |||
Noncurrent Assets | |||||
Property. Rant, and Equipment - net | $3,854,542 | $4,323,471 | |||
Total Noncurrent Assets | $3,854,542 | $4,323,471 | |||
Total Assets | $4,829,264 | $5,068,049 | |||
Liabilities | |||||
Current Liabilities | |||||
Current Portion of Long-Term Debt | $ 125,622 | $ 360,877 | |||
Accounts Payable | 528,252 | 446,695 | |||
Income Taxes Payable | 185,877 | 165,255 | |||
Total Current Liabilities | $ 839,751 | $ 972,827 | |||
Noncurrent Liabilities | |||||
Notes Payable | $ 730,854 | $ 635,597 | |||
Total Noncurrent Liabilities | S 730,854 | $ 635,597 | |||
Total Liabilities | $1.570,605 | $1,608,424 | |||
Shareholders' Equity | |||||
Common Stock. $1 par value | $ 381,358 | $ 381,358 | |||
Additional Paid-in Capital in Excess | 1,129,950 | 1,129,950 | |||
of Par - Common | |||||
Retained Earnings | 2,287,351 | 2,083,317 | |||
Total Shareholders' Equity | $3,798,659 | $3,594,625 | |||
Less: |
(540,000) | (135.000) | |||
Total Liabilities and Shareholders' Equity | $4,829,264 | $5,068,049 |
Starland Corporation Income Statement For the Current Year Ended December 31 |
|
Sales | $1,875,050 |
Cost of Goods Sold | 1,125,030 |
Gross Profit | $ 750,020 |
Selling, General, and Administrative Expenses | $ 205,000 |
4,394 | |
Depreciation Expense | 39,525 |
Total Operating Expenses | $ 248,919 |
Operating Income | S 501,101 |
Loss on Disposal of Equipment | $ (50,000) |
Interest Expense | (12,500) |
Income before Tax | $ 438,601 |
Income Tax Expense | (175,440) |
Net Income | $ 263,161 |
Additional information
- during the current year
- Starland sold equipment with a carrying value of $429, 404 at a $50,000 loss.
- The company borrowed additional funds by issuing a long-term note Any debt payments made during the year reduced the current portion of long-term debt.
Required
Prepare the cash flow statement for Starland Corporation for the current year using the indirect method Provide all required disclosures.
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Check out a sample textbook solutionChapter 22 Solutions
Intermediate Accounting (2nd Edition)
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Statement of Cash Flows, Indirect Method,...Ch. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Statement of Cash Flows, Direct Method, Complex...Ch. 22 - Prob. 1JCCh. 22 - Prob. 1FSCCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
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