Condensed financial data of Carla Company for 2025 and 2024 are presented below. Cash Carla Company Comparative Balance Sheet As of December 31, 2025 and 2024 Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings Gross margin Selling and administrative expense Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business Additional information: Carla Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,010 Cost of goods sold 4,730 2025 2024 $1,770 $1,170 1,790 1,320 1,940 930 1,350 2,280 540 (1,200) (1,190) 1,300 1,420 $7,180 $6,340 $1,210 80 1,430 1,610 1,910 2,520 $7,180 890 260 $630 200 1,370 1,880 1,680 $910 240 1,560 1,740 1,890 $6,340 During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesise.g. (15,000))

Condensed financial data of Carla Company for 2025 and 2024 are presented below. Cash Carla Company Comparative Balance Sheet As of December 31, 2025 and 2024 Receivables Inventory Plant assets Accumulated depreciation Long-term investments (held-to-maturity) Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings Gross margin Selling and administrative expense Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business Additional information: Carla Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,010 Cost of goods sold 4,730 2025 2024 $1,770 $1,170 1,790 1,320 1,940 930 1,350 2,280 540 (1,200) (1,190) 1,300 1,420 $7,180 $6,340 $1,210 80 1,430 1,610 1,910 2,520 $7,180 890 260 $630 200 1,370 1,880 1,680 $910 240 1,560 1,740 1,890 $6,340 During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2025. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesise.g. (15,000))

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSA

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