IV. (5 Points) Hartman, Inc. has prepared the following comparative balance sheets for 2017 and 2018:...

 

Transcribed Image Text:

IV. (5 Points) Hartman, Inc. has prepared the following comparative balance sheets for 2017 and 2018: 2018 2017 Cash $ 282,000 $ 153,000 139,000 117,000 Accounts receivable Inventory 150,000 180,000 Prepaid expenses 18,000 27,000 Plant assets 1,295,000 1,050,000 Accumulated depreciation (450,000) (375,000) Patent 153,000 174,000 $1.587,000 Accounts payable $ 168,000 Accrued liabilities 42,000 Mortgage payable 450,000 Preferred stock 525,000 Additional paid-in capital preferred 120,000 Common stock 600,000 600,000 Retained earnings 129,000 66,000 $1,587,000 $1,326,000 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year. The income statement for 2018 is as follows: Sales revenue $1,980,000 Cost of sales 1.089.000 Gross profit 891,000 Operating expenses 690,000 Net income $201.000 Instructions (a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2018. (b) From the information above, prepare a schedule of cash provided by operating activities using the direct method. $1.326,000 $ 153,000 60,000 IV. (5 Points) Hartman, Inc. has prepared the following comparative balance sheets for 2017 and 2018: 2018 2017 Cash $ 282,000 $ 153,000 139,000 117,000 Accounts receivable Inventory 150,000 180,000 Prepaid expenses 18,000 27,000 Plant assets 1,295,000 1,050,000 Accumulated depreciation (450,000) (375,000) Patent 153,000 174,000 $1.587,000 Accounts payable $ 168,000 Accrued liabilities 42,000 Mortgage payable 450,000 Preferred stock 525,000 Additional paid-in capital preferred 120,000 Common stock 600,000 600,000 Retained earnings 129,000 66,000 $1,587,000 $1,326,000 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year. The income statement for 2018 is as follows: Sales revenue $1,980,000 Cost of sales 1.089.000 Gross profit 891,000 Operating expenses 690,000 Net income $201.000 Instructions (a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2018. (b) From the information above, prepare a schedule of cash provided by operating activities using the direct method. $1.326,000 $ 153,000 60,000

Answer rating: 100% (QA)

a Hartman Inc Statement of Cash Flows Indirect method For the Year Ended December 31 2018 Cash Flow ... View the full answer