Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 2014 and 2013.

Question:

Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 2014 and 2013.

Presented next are the balance sheet accounts of Bergen Corporation

Additional Information:
€¢ On January 2, 2014, Bergen sold all of its marketable investment securities for $95,000 cash.
€¢ On March 10, 2014, Bergen paid a cash dividend of $50,000 on its common stock. No other dividends were paid or declared during 2014.
€¢ On April 15, 2014, Bergen issued 2,000 shares of its common stock for land having a fair value of $100,000.
€¢ On May 25, 2014, Bergen borrowed $450,000 from an insurance company. The underlying promissory note bears interest at 15% and is payable in three equal annual installments of $150,000. The first payment is due on May 25, 2015.
€¢ On June 15, 2014, Bergen purchased equipment for $392,000 cash.
€¢ On July 1, 2014, Bergen sold equipment costing $52,000, with a book value of $28,000 for $33,000 cash.
€¢ On December 31, 2014, Bergen leased equipment from Tilden Company for a 10-year period. Equal payments under the lease are $25,000 due on December 31 each year. The first payment was made on December 31, 2014. The present value at December 31, 2014, of the 10 lease payments is $158,000. Bergen appropriately recorded the lease as a capital lease. The $25,000 lease payment due on December 31, 2015, will consist of $9,000 principal and $16,000 interest.
€¢ Bergen's net income for 2014 is $253,000.
€¢ Bergen owns a 10% interest in the voting common stock of Mason, Inc. Mason reported net income of $120,000 for the year ended December 31, 2014, and paid a common stock dividend of $55,000 during 2014.

Required:
Prepare a cash flow statement for Bergen using the indirect method for2014.

Balance Sheet
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...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

Question Posted: