The controller in your firm has put you in charge of preparing the Statement of Cash Flows
Question:
The controller in your firm has put you in charge of preparing the Statement of Cash Flows for the year ended December 31, 2017. You gather the following data. Your firm uses the indirect method.
Your working papers from the audit contain the following information:
On November 1, 2017, 25,000 shares of $1 par stock were sold for $175,000
A patent was purchased for $31,000
During the year, equipment that had a cost basis of $26,400 and on which there was an accumulated depreciation of $5,800 was sold for $15,000. No other plant assets were sold during the year
The 10%, $300,000 40 year bonds were dated and issued on Jan 2, 2004. Interest was payable on June 30, and December 31. They were sold originally at 97. These bonds were retired at 101 plus accrued interest on May 31, 2017
The 6%, $400,000 20 year bonds were dated January 1, 2017 and were sold on may 31 at 102 plus accrued interest. Interest is payable semiannually on June 30 and Dec 31. Expense of Issuance was $1,200
You acquired 60% control in another company on Jan 2, 2017 for $146,000. The Income statement of that company for 2017 shows a net income of $90,000
Extraordinary repairs to buildings of $12,600 were charged to Accumulated Depreciation- Buildings
Interest paid in 2017 was $31,000 and Income taxes paid were $38,000
Net Income for the year totaled $76,538
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson