Question: This problem continues the Davis Consulting Inc situation from Problem

This problem continues the Davis Consulting, Inc. situation from Problem P13-47 of Chapter 13. Davis Consulting’s comparative balance sheet is shown ­below.

Additional data follows:
a. Depreciation expense for the year, $ 2,653.
b. Davis Consulting had no disposal of plant assets during the year. Plant assets were acquired for cash.
c. Amortization of the discount on bonds payable for the year, $ 3,432.
d. Davis Consulting issued a bonds payable with a face value of $ 400,000, receiving cash of $ 360,384.
e. Net income for the year was $ 141,235.
f. Cash receipts from issuance of common stock totaled $ 112,000.
Prepare the statement of cash flows using the indirectmethod.

  • CreatedJanuary 16, 2015
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