Comparative balance sheets, an income statement, and additional information follow. Required 1. Prepare a statement of cash
Question:
Comparative balance sheets, an income statement, and additional information follow.
Required
1. Prepare a statement of cash flows using the indirect method for the current year.
2.B Prepare a statement of cash flows using the direct method for the current year.
Transcribed Image Text:
At December 31 Assets Cash Accounts receivable. Inventory... Prepaid expenses Total current assets. Equipment..... UMA COMPANY Balance Sheets Accum. depreciation Equipment.. Total assets. Liabilities Accounts payable. Income taxes payable Dividends payable Total current liabilities.. Bonds payable... Total liabilities. Equity Common stock, $10 par. Retained earnings.... Total liabilities and equity Current Yr Prior Yr $ 23,925 $ 43,050 34,125 39,825 156,000 146,475 3,600 1,650 236,775 211,875 135,825 146,700 (61,950) (47,550) $310,650 $311,025 $ 28,800 $33,750 5,100 0 33,900 4,425 4,500 42,675 37,500 33,900 80,175 168,750 168,750 108,000 $310,650 $311,025 62,100 UMA COMPANY Income Statement For Current Year Ended December 31 Sales.... Cost of goods sold... Operating expenses (excluding depreciation).... Depreciation expense.. Other gains (losses) Loss on sale of equipment .... Loss on retirement of bonds... Income before taxes. Income tax expense Net income $222,300 120,300 25,500 (368,100) 78,000 3,300 825 $446,100 e. All sales are made on credit. f. All inventory purchases are on credit. (4,125) 73,875 (13.725) $ 60,150 Additional Information for the Current Year a. Equipment costing $21.375 with accumulated depreciation of $11,100 is sold for cash. b. Equipment purchases are for cash. c. Accumulated Depreciation is affected by depreciation expense and the sale of equipment. d. The balance of Retained Earnings is affected by dividend declarations and net income. g. Accounts Payable balances result from inventory purchases. h. Prepaid expenses relate to Operating Expenses.
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