Metlock Inc. had the following condensed balance sheet at the end of operations for 2024. Metlock...
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Metlock Inc. had the following condensed balance sheet at the end of operations for 2024. Metlock Inc. Balance Sheet December 31, 2024 Cash $8,500 Current liabilities $15,200 Current assets other than cash 29,300 Long-term notes payable 25,500 Equity investments 19,800 Bonds payable 25,000 Plant assets (net) 67,500 Common stock 75,000 Land 39,900 Retained earnings 24,300 $165,000 $165,000 During 2025, the following occurred. 1. A tract of land was purchased for $8,900. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $9,900 in common stock was issued at par. 4. Dividends totaling $9,300 were paid to stockholders. 5. Net income was $30,000 after allowing depreciation of $13,700. 6. Land was purchased through the issuance of $22,700 in bonds. 7. 8. Metlock Inc. sold part of its investment portfolio for $12,800. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2025. Both current assets (other than cash) and current liabilities remained at the same amount. Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) METLOCK INC. STATEMENT OF CASH FLOWS For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Cash Flows from Investing Activities Gain on Sale of Investments Depreciation Expense Net Cash Provided by Operating Activities + Cash Flows from Investing Activities Purchase of Land Sale of Investments Cash Flows from Investing Activities $ -2000 13700 -8900 12800 Cash Flows from Financing Activities Payment of Dividends -9300 Redemption of Bonds Payable + -15000 Issuance of Common Stock 9900 Cash Flows from Financing Activities Net Increase in Cash Cash, January 1, 2025 Cash, December 31, 2025 Noncash Investing and Financing Activities + Issuance of Bonds for Land $ 30 $ Metlock Inc. had the following condensed balance sheet at the end of operations for 2024. Metlock Inc. Balance Sheet December 31, 2024 Cash $8,500 Current liabilities $15,200 Current assets other than cash 29,300 Long-term notes payable 25,500 Equity investments 19,800 Bonds payable 25,000 Plant assets (net) 67,500 Common stock 75,000 Land 39,900 Retained earnings 24,300 $165,000 $165,000 During 2025, the following occurred. 1. A tract of land was purchased for $8,900. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $9,900 in common stock was issued at par. 4. Dividends totaling $9,300 were paid to stockholders. 5. Net income was $30,000 after allowing depreciation of $13,700. 6. Land was purchased through the issuance of $22,700 in bonds. 7. 8. Metlock Inc. sold part of its investment portfolio for $12,800. This transaction resulted in a gain of $2,000 for the company. No unrealized gains or losses were recorded on these investments in 2025. Both current assets (other than cash) and current liabilities remained at the same amount. Prepare a statement of cash flows for 2025 using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) METLOCK INC. STATEMENT OF CASH FLOWS For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Cash Flows from Investing Activities Gain on Sale of Investments Depreciation Expense Net Cash Provided by Operating Activities + Cash Flows from Investing Activities Purchase of Land Sale of Investments Cash Flows from Investing Activities $ -2000 13700 -8900 12800 Cash Flows from Financing Activities Payment of Dividends -9300 Redemption of Bonds Payable + -15000 Issuance of Common Stock 9900 Cash Flows from Financing Activities Net Increase in Cash Cash, January 1, 2025 Cash, December 31, 2025 Noncash Investing and Financing Activities + Issuance of Bonds for Land $ 30 $
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Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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