Using the indirect method, prepare a statement of cash flows for Sullivan Corp. The following are Sullivan
Fantastic news! We've Found the answer you've been seeking!
Question:
Using the indirect method, prepare a statement of cash flows for Sullivan Corp.
Transcribed Image Text:
The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Comparative Balance Sheets 2025 Cash Accounts receivable Inventory Property plant. and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets Accounts payable $ 815,000 1.128,000 2024 $ 700,000 1.168.000 Increase (Decrease) $115,000 (40,000) 1,850,000 1,715,000 135,000 3,307,000 2,967,000 (1.165,000) (1,040,000) 340,000 (125,000) 310,000 250,000 $6.495.000 $1,015,000 Income taxes payable 30,000 Dividends payable 80,000 $5,785,000 $ 955,000 50.000 100,000 275,000 250,000 $710,000 35,000 $ 60,000 (20.000) (20,000) Lease liability 400.000 - 400,000 Common stock. $1 par 500,000 500.000 Paid-in capital in excess of par-common stock 1,500,000 1,500,000 Retained earnings. 2.970,000 2,680,000 290,000 Total liabilities and stockholders' equity $6.495.000 $5,785.000 $710,000 Additional information: . On December 31, 2024, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. During 2025, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2025. On January 2, 2025, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. On December 31, 2025, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2026. Net income for 2025 was $370,000. Sullivan declared and paid the following cash dividends for 2025 and 2024. 2025 Declared Paid December 15, 2025 February 28, 2026 Amount $80,000 2024 December 15, 2024 February 28, 2025 $100,000 The following are Sullivan Corp.'s comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Comparative Balance Sheets 2025 Cash Accounts receivable Inventory Property plant. and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets Accounts payable $ 815,000 1.128,000 2024 $ 700,000 1.168.000 Increase (Decrease) $115,000 (40,000) 1,850,000 1,715,000 135,000 3,307,000 2,967,000 (1.165,000) (1,040,000) 340,000 (125,000) 310,000 250,000 $6.495.000 $1,015,000 Income taxes payable 30,000 Dividends payable 80,000 $5,785,000 $ 955,000 50.000 100,000 275,000 250,000 $710,000 35,000 $ 60,000 (20.000) (20,000) Lease liability 400.000 - 400,000 Common stock. $1 par 500,000 500.000 Paid-in capital in excess of par-common stock 1,500,000 1,500,000 Retained earnings. 2.970,000 2,680,000 290,000 Total liabilities and stockholders' equity $6.495.000 $5,785.000 $710,000 Additional information: . On December 31, 2024, Sullivan acquired 25% of Myers Co.'s common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. During 2025, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2025. On January 2, 2025, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. On December 31, 2025, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2026. Net income for 2025 was $370,000. Sullivan declared and paid the following cash dividends for 2025 and 2024. 2025 Declared Paid December 15, 2025 February 28, 2026 Amount $80,000 2024 December 15, 2024 February 28, 2025 $100,000
Expert Answer:
Answer rating: 100% (QA)
Statement of Cash Flows for Sullivan Corp For the Year Ended December 31 2025 Using the Indirect Method Operating Activities Net income 370000 Adjustm... View the full answer
Related Book For
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Prepare the production budget for Hoak Inc.. Company policy calls for a given quarter's ending finished goods inventory to equal 90% of the next quarter's expected unit sales. The finished goods...
-
The following is Mann Corp.s comparative balance sheet at December 31, 2011, and 2010, with a column showing the increase (decrease) from 2010 to 2011: Additional information: 1. On December 31,...
-
Two partners each take out a life insurance policy on the life of the other, paying the premiums out of partnership funds. Each names the other as beneficiary of the policy. The partnership ends, but...
-
A business had always made an allowance for doubtful debts at the rate of 2 per cent of accounts receivable. On 1 January 2011 the amount for this, brought forward from the previous year, was 300....
-
Suppose the domestic demand and supply for corn intersects at p and suppose further that p also happens to be the world price for corn. (Since the domestic price is equal to the world price, there...
-
Based on data from a survey of 1,200 randomly selected Facebook users ( USA Today, March 24, 2010), a 98% confidence interval for the proportion of all Facebook users who say it is OK to ignore a...
-
Does the income statement of Tastykake in Appendix A indicate the net income earned by its business segments? If so, list them.
-
Klein Sisters Products Inc. manufactures a liquid product in one department. Due to the nature of the product and the process, units are regularly lost at the beginning of production. Materials and...
-
21. Find the exact values of the three trigonometric functions sine, cosine, tangent of the real number t. (-a, b) D 12 5 .-13.-113
-
The DC Inc 6.3% 2020 bond is priced to yield 7.1% while the Starbucks 6.3% 2020 bond is priced to yield 6.9%. The 6.3% 2020 US Treasury bond is priced to yield 3.7%. If the market assumes that there...
-
Assume that you drink a $4 latte a day. Over the month the cost is $80 (= $4 5 4). Assume that you choose to forgo your daily latte and instead invest this amount at the end of each month in an...
-
Mr. King, a 47 yr old welder, works at a local shop in AB where he is paid weekly. Assuming that you are calculating the 36th pay cheque of 2021 and that he has worked 37 hours this week at the same...
-
5251 3. In a group of 100 people, 20 smoke, 40 drink, 15 people smoke and drink. What is the probability that a person in this group smokes or drinks. Write the probability rule which applies. There...
-
Q2. Read the following case relating to a toy manufacturing company produces two products: Product A and B and solve the questions given at the end of the case using the data. The budgeted cost...
-
CST embodies an evolving tradition of political theology with certain enduring characteristics: the dignity of the person, the common good, reciprocity of governments and citizens, democratic rule...
-
Auditors assess the risks of material misstatement and then design further audit procedures. Required: a. Describe the auditors' approach to identifying and assessing the risks of material...
-
What is the difference between adsorption and absorption?
-
__________ suggests that public corporations can function effectively even though their managers are self-interested and do not automatically bear the full consequences of their managerial actions....
-
A ___________ is the range of authoritative requests to which a subordinate is willing to respond without subjecting the directives to critical evaluation or judgment. (a) A zone of indifference (b)...
-
Define organizational politics and give an example of how it operates in both functional and dysfunctional ways.
Financial Accounting Reporting And Analysis International 2nd Edition - ISBN: 027370253X - Free Book
Study smarter with the SolutionInn App