3. 25 pts Rayon Company has the following balance sheets and income statement: ...
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3. 25 pts | Rayon Company has the following balance sheets and income statement: | ||||||||||||
2022 | 2021 | ||||||||||||
Cash | $15,000 | $10,000 | |||||||||||
Receivables | 6,000 | 10,000 | |||||||||||
Inventories | 17,000 | 18,000 | |||||||||||
Equipment | 33,000 | 40,000 | |||||||||||
Accumulated Depreciation | -8,000 | -10,000 | |||||||||||
$63,000 | $68,000 | ||||||||||||
Accounts Payable | $10,000 | $15,000 | |||||||||||
Capital Stock | 20,000 | 16,000 | |||||||||||
Retained Earnings | 33,000 | 37,000 | |||||||||||
$63,000 | $68,000 | ||||||||||||
Sales | $110,000 | ||||||||||||
Cost of Sales | 72,000 | ||||||||||||
Loss on sale of Assets | -2,000 | ||||||||||||
Expenses | 16,000 | 90,000 | |||||||||||
Income | $20,000 | ||||||||||||
Depreciation expense for the year was $5,000. Equipment costing $15,000 and having a book value of $8,000 was sold | |||||||||||||
at a loss. Other equipment was purchased during the year, stock was issued for $4,000, and a dividend was paid. | |||||||||||||
In proper format, prepare using the indirect method a cash flow statement for 2022. | |||||||||||||
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0324660135
3rd Edition
Authors: Mowen, Hansen, Heitger
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