An analysis of accounts follows: a. Purchased equipment, $19,000, and issued capital stock in full payment. b.
Question:
An analysis of accounts follows:
a. Purchased equipment, $19,000, and issued capital stock in full payment.
b. Purchased a long-term investment for cash, $15,000.
c. Paid cash dividend, $10,000.
d. Sold operational asset for $6,000 cash (cost, $21,000, accumulated depreciation, $15,000).
e. Sold capital stock, 300 shares at $12 per share cash.
Required:
Complete the spreadsheet for the statement of cash flows using the indirectmethod.
Transcribed Image Text:
ANALYSIS OF CHANGES Beginning Balaneces, Ending Balances, Items from Financial Statements 12/31/2012 Debit Credit 12/31/2013 Income statement items Sales $140,000 $59,000 Cost of goods sold Depreciation Wage expense Income tax expense 5,000 28,000 9,000 Interest expense 5,000 Remaining expenses Net income 15,800 18,200 Balance sheet items S 20,500 S 18,800 Cash Accounts receivable 22,000 22,000 Merchandise inventory Investments, long-term Equipment 68,000 75,000 15,000 114,500 112,500 Total debits $225,000 $243.300 S 32,000 17,000 S 22,000 Accumulated depreciation Accounts payable Wages payable Income taxes payable Bonds payable Common stock, no par Retained earnings 14,000 1,500 2,500 3,000 4,500 54,000 54,000 122,600 100,000 16,500 24,700 $243,300 Total credits $225,000 Outflows Inflows Statement of cash flows Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Net increase (decrease) in cash Totals
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