The comparative balance sheets for Hinckley Corporation show the following information. December 31 2017 2016 S13,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The comparative balance sheets for Hinckley Corporation show the following information. December 31 2017 2016 S13,000 10,000 9,000 3,000 29,750 20,000 6,250 Cash Accounts receivable S 33,500 12,250 12,000 -0- Inventory Available-for-sale debt investments Buildings Equipment Patents -0- ORS 45,000 5,000 $107.750 $91,000 $ 3,000 2,000 -0- $ 4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 Allowance for doubtful accOunts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 5,000 3,000 31,000 43,000 20,750 $107,750 $91,000 Additional data related to 2017 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000 (net of $2,000 taxes). 5. Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,500 were paid in cash. Instructions Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country. The comparative balance sheets for Hinckley Corporation show the following information. December 31 2017 2016 S13,000 10,000 9,000 3,000 29,750 20,000 6,250 Cash Accounts receivable S 33,500 12,250 12,000 -0- Inventory Available-for-sale debt investments Buildings Equipment Patents -0- ORS 45,000 5,000 $107.750 $91,000 $ 3,000 2,000 -0- $ 4,500 4,500 6,000 3,000 5,000 4,000 25,000 33,000 6,000 Allowance for doubtful accOunts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 5,000 3,000 31,000 43,000 20,750 $107,750 $91,000 Additional data related to 2017 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,000 (net of $2,000 taxes). 5. Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $2,000 and income taxes of $6,500 were paid in cash. Instructions Prepare a statement of cash flows using the indirect method. Flood damage is unusual and infrequent in that part of the country.
Expert Answer:
Answer rating: 100% (QA)
Hinckley corporation Statement of Cash flows For the Year Ended December 31 2017 Cash flows from ope... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
Students also viewed these accounting questions
-
The comparative balance sheets for Hinckley Corporation show the following information. Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at...
-
The comparative balance sheets for Hinckley Corporation show the following information. Additional data related to 2010 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at...
-
Approximate the solution u(x, t) = sin x os t to the problem described below. u u at x u(0, t) = u(n, t) = 0, t > 0, u(x,0) = sinx, (x,0) = 0, 0xn. x Use the Finite-Difference algorithm with a) h =...
-
Please watch the video link and answer the following questions. https://youtu.be/VtvjbmoDx-I On January 22,1984, Apple produced one of the most famous Super Bowl ads of all time. Directed by Ridley...
-
Let X1, . . ., Xn be a random sample on [0, 1] with pdf What equation does the maximum likelihood estimate of satisfy? f(x) (1x)} (20) -)-1, 0>0.
-
Describe the main functions of the different components of ATP synthase enzyme in the mitochondrion. A structurally similar enzyme is responsible for the acidification of lysosomes and endosomes....
-
Why is it important to evaluate increases and decreases in operating expenses? (a) Increases in operating expenses may indicate inefficiencies, and decreases in operating expenses may be detrimental...
-
Journalize the following transactions in the accounts of Metromark Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: Feb. 11. Sold...
-
A certain bond has a 5-year maturity, pays a coupon rate of 7%, and sells for $1,064.80. What is the bond's duration in years assuming that coupon payments are made semiannually? Report your answer...
-
Assume the periodic message signal m(t), shown below, is applied to a phase modulator with a phase sensitivity of kp-2n rad/Volt. Assume a carrier frequency of fe=1 Hz. a) Sketch the phase of the...
-
Preparation of Financial Statement with adjustments The following is the trial balance of Johnathan Sdn Bhd as at 31 st December 2020 Dr Cr RM RM Account Receivables 60,000 Accounts Payables 40,000...
-
How would an advance in the technology of pollution control affect the MCC? Explain this using a graph? Can you provide an example or two that would represent an advance in pollution-control...
-
What is a buying intentions survey, and what does it accomplish?
-
What are benefits and drawbacks of ACOs?
-
In the discussion of damage costs, why is it important to give attention to the type (nature) of the waste; that is, biodegradable versus persistent pollutants? Explain.
-
What are the key differences among proprietorships, partnerships, and corporations?
-
Problem 1 Company A purchases 10,000 shares of Company B common stock for $100,000 cash. This investment represents 30% of Company B's common stock. Complete the journal entry to record the purchase...
-
Arlington Merchants reported the following on its income statement for the fiscal years ending December 31, 2016 and 2015. 2016 2015 Sales $4,857,500 $4,752,900 Cost of goods sold 3,258,950 3,207,000...
-
On April 25, Foreman Electric installs wiring in a new home for $3,500 on account. However, on April 27, Foremans electrical work does not pass inspection, and Foreman grants the customer an...
-
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2, 2015, for $40,000. In addition to the cost of inventory, the...
-
Wildcat Corporation has the following transactions. TransactionsWildcats related Accounts 1. Wildcat pays rent for the current month. ......Rent Expense 2. Wildcat provides services to customers....
-
What role does the HAL play in the platform?
-
If your logic analyzer is capable of on-the-fly disassembly, use it to display bus activity in the form of instructions, rather than simply 1s and 0s.
-
Draw UML state diagrams for device 1 and device 2 in a four-cycle handshake.
Study smarter with the SolutionInn App