Data for Granger Inc. are presented in P13.9. Further analysis reveals that accounts payable pertain to merchandise creditors.

Instructions

Prepare a statement of cash flows for Granger Inc. using the direct method.

 P13.9

Condensed financial data of Granger Inc. follow.

Additional information:

1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
5. Common stock was issued at par for cash.
6. There were no significant noncash transactions.

Instructions

Prepare a statement of cash flows using the indirect method.

Transcribed Image Text:

Granger Inc. Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets Accumulated depreciation Total Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total 2022 $ 80,800 87,800 112,500 28,400 138,000 285,000 (50,000) $682,500 $102,000 16,500 110,000 220,000 234,000 $682,500 2021 $ 48,400 38,000 102,850 26,000 109,000 242,500 (52,000) $514,750 $ 67,300 21,000 146,000 175,000 105,450 $514,750