Condensed financial data of Whispering Winds Corp. follow. Whispering Winds Corp. Comparative Balance Sheets December 31 Assets
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Condensed financial data of Whispering Winds Corp. follow.
Whispering Winds Corp. Comparative Balance Sheets December 31 | ||||||
Assets | | 2017 | | | 2016 | |
Cash | | $ 158,368 | | | $ 94,864 | |
Accounts receivable | | 172,088 | | | 74,480 | |
Inventory | | 220,500 | | | 201,586 | |
Prepaid expenses | | 55,664 | | | 50,960 | |
Long-term investments | | 270,480 | | | 213,640 | |
Plant assets | | 558,600 | | | 475,300 | |
Accumulated depreciation | | (98,000 | ) | | (101,920 | ) |
Total | | $1,337,700 | | | $1,008,910 | |
| | | | | | |
Liabilities and Stockholders’ Equity | | | | | | |
Accounts payable | | $ 199,920 | | | $ 131,908 | |
Accrued expenses payable | | 32,340 | | | 41,160 | |
Bonds payable | | 215,600 | | | 286,160 | |
Common stock | | 431,200 | | | 343,000 | |
Retained earnings | | 458,640 | | | 206,682 | |
Total | | $1,337,700 | | | $1,008,910 | |
Whispering Winds Corp. Income Statement Data For the Year Ended December 31, 2017 | ||||
Sales revenue | | | | $761,382 |
Less: | | | | |
Cost of goods sold | | $265,502 | | |
Operating expenses, excluding depreciation | | 24,324 | | |
Depreciation expense | | 91,140 | | |
Income tax expense | | 53,469 | | |
Interest expense | | 9,271 | | |
Loss on disposal of plant assets | | 14,700 | | 458,406 |
Net income | | | | $ 302,976 |
Additional information:
1. | | New plant assets costing $196,000 were purchased for cash during the year. |
2. | | Old plant assets having an original cost of $112,700 and accumulated depreciation of $95,060 were sold for $2,940 cash. |
3. | | Bonds payable matured and were paid off at face value for cash. |
4. | | A cash dividend of $51,018 was declared and paid during the year. |
Prepare a statement of cash flows using the indirect method.
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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