Clarion Corporation's 2003 and 2002 balance sheets included the following items. Debits Cash Accounts receivable Merchandise...

 

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Clarion Corporation's 2003 and 2002 balance sheets included the following items. Debits Cash Accounts receivable Merchandise inventory Prepaid expenses. Equipment Totals. Credits Accumulated depreciation, equipment Accounts payable.. Short-term notes payable. Long-term notes payable. Common stock, $10 par value Contributed capital in excess of par value, common stock. Retained earnings. Totals. were receipts from customers. 2003 S 43.100 $61.300 $2,000 39.700 219,000 202.000 December 31 2002 4.300 127.600 $446,000 $396.000 al. Sales revenue, all on credit. a2. Credits to Accounts Receivable during the period 8. Net income.. $ 27,700 $35,200 70,500 8,000 75.000 135,000 bl. Cost of goods sold. 62. All merchandise purchases were on credit. b3. Debits to Accounts Payable during the period resulted from payments to creditors. c. Depreciation expense.. dl. Other expenses d2. The other expenses were paid in advance and were initially debited to Prepaid Expenses. f. e. Income taxes expense (paid with cash). Loss on sale of equipment. 5.000 88.000 26,000 103,800 94,500 $446,000 $396,000 The equipment cost $37,500, was depreciated by $22,500, and was sold for $10.900. 93,300 5.000 43,000 125,000 hl. Equipment that cost $77,100 was purchased by paying cash of $20,000 and (h2) by signing a long-term note payable for the balance. Borrowed $3.000 by signing a short-term note payable. Paid $25,100 to reduce a long-term note payable. i. j. k. Issued 1.000 shares of common stock for cash at $36 per share. 1. Declared and paid cash dividends of $49.700. $200,000 15,000 109.200 9,700 4.100 $397,000 338,000 $ 59,000 Refer to the information about Clarion Corporation above to prepare a working paper for a statement of cash flows according to the direct method. Clarion Corporation's 2003 and 2002 balance sheets included the following items. Debits Cash Accounts receivable Merchandise inventory Prepaid expenses. Equipment Totals. Credits Accumulated depreciation, equipment Accounts payable.. Short-term notes payable. Long-term notes payable. Common stock, $10 par value Contributed capital in excess of par value, common stock. Retained earnings. Totals. were receipts from customers. 2003 S 43.100 $61.300 $2,000 39.700 219,000 202.000 December 31 2002 4.300 127.600 $446,000 $396.000 al. Sales revenue, all on credit. a2. Credits to Accounts Receivable during the period 8. Net income.. $ 27,700 $35,200 70,500 8,000 75.000 135,000 bl. Cost of goods sold. 62. All merchandise purchases were on credit. b3. Debits to Accounts Payable during the period resulted from payments to creditors. c. Depreciation expense.. dl. Other expenses d2. The other expenses were paid in advance and were initially debited to Prepaid Expenses. f. e. Income taxes expense (paid with cash). Loss on sale of equipment. 5.000 88.000 26,000 103,800 94,500 $446,000 $396,000 The equipment cost $37,500, was depreciated by $22,500, and was sold for $10.900. 93,300 5.000 43,000 125,000 hl. Equipment that cost $77,100 was purchased by paying cash of $20,000 and (h2) by signing a long-term note payable for the balance. Borrowed $3.000 by signing a short-term note payable. Paid $25,100 to reduce a long-term note payable. i. j. k. Issued 1.000 shares of common stock for cash at $36 per share. 1. Declared and paid cash dividends of $49.700. $200,000 15,000 109.200 9,700 4.100 $397,000 338,000 $ 59,000 Refer to the information about Clarion Corporation above to prepare a working paper for a statement of cash flows according to the direct method.

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Preparing a statement of cash flows using the direct method involves analyzing the changes in each account from one year to the next to determine the ... View the full answer