The comparative balance sheet of TorMax Technology, Inc. at December 31, 2010 and 2009, is as follows:
Question:
2009, is as follows:
An examination of the income statement and the accounting records revealed the following additional information applicable to 2010:
a. Net income, $184,150.
b. Depreciation expense reported on the income statement: buildings, $18,450; machinery and equipment, $8,100.
c. Patent amortization reported on the income statement, $5,000.
d. A building was constructed for $207,000.
e. A mortgage note for $80,000 was issued for cash.
f. 5,000 shares of common stock were issued at $28 in exchange for the bonds payable.
g. Cash dividends declared, $46,800.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren