The following schedule shows the account balances of Beneficio Corporation at the beginning and end of the

Question:

The following schedule shows the account balances of Beneficio Corporation at the beginning and end of the fiscal year ended October 31, 2013.

The following schedule shows the account balances of Beneficio Corporation
The following schedule shows the account balances of Beneficio Corporation

The following information was also available:
(a) All purchases and sales were on account.
(b) Equipment with an original cost of $15,000 was sold for $7,000.
(c) Selling and general expenses include the following:
Building depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,750
Equipment depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25,250
Bad debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,000
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
(d) A 6-month note payable for $50,000 was issued toward the purchase of new equipment.
(e) The long-term note payable requires the payment of $20,000 per year plus interest until paid.
(f) Treasury stock was sold for $1,000 more than its cost.
(g) During the year, a 30% stock dividend was declared and issued. At the time, there were 100,000 shares of $2 par common stock outstanding. However, 1,000 of these shares were held as treasury stock at the time and were prohibited from participating in the stock dividend. Market price was $10 per share after the stock dividend was issued.
(h) Equipment was overhauled, extending its useful life at a cost of $6,000. The cost was debited to Accumulated Depreciation-Equipment.
(i) Beneficio has determined that its purchases and sales of trading securities are operating activities.
Instructions:
Prepare a complete statement of cash flows for the year ended October 31, 2013, using the indirect method of reporting cash flows from operations?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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...
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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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