Data presented below are from the records of Antonio Brasileiro: Particulars Cash Current assets other than...
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Data presented below are from the records of Antonio Brasileiro: Particulars Cash Current assets other than cash Long-term investments Plant assets Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings Total Total Solutions: December 31, 2018 December 31, 2017 $ 15,000 $ 8,000 85,000 60,000 10,000 53,000 3,35,000 $4,45,000 $ 20,000 40,000 75,000 2,54,000 56,000 $4,45,000 iii) Net income as reported on the income statement for the year was $57,000. iv) The company paid dividends totaling $10,000. v) Depreciation charged for the year was $20,000. Instructions: Prepare a statement of cash flows for the year 2018 using indirect method. Additional Information: i) In 2018, the company sold for $34,000 available-for-sale investments carried at a cost of $43,000 on December 31, 2018. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings. ii) In 2018, the company sold for $8,000 plant assets that cost $5,000 and were 80% depreciated. The loss (not extraordinary) was incorrectly charged directly to Retained earnings. Antonio Brasileiro Company Statement of Cash Flows For the year ended December 31, 2018 Particulars Cash flows from operating activities: Net income ($57,000-$9,000-$2,000) 2,15,000 $3,36,000 Adjustment to reconcile net income to net cash provided by operating activities: $ 40,000 22,000 -0- 2,54,000 20,000 $3,36,000 Amount (S) Amount ($) 46,000 50,000 Data presented below are from the records of Antonio Brasileiro: Particulars Cash Current assets other than cash Long-term investments Plant assets Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings Total Total Solutions: December 31, 2018 December 31, 2017 $ 15,000 $ 8,000 85,000 60,000 10,000 53,000 3,35,000 $4,45,000 $ 20,000 40,000 75,000 2,54,000 56,000 $4,45,000 iii) Net income as reported on the income statement for the year was $57,000. iv) The company paid dividends totaling $10,000. v) Depreciation charged for the year was $20,000. Instructions: Prepare a statement of cash flows for the year 2018 using indirect method. Additional Information: i) In 2018, the company sold for $34,000 available-for-sale investments carried at a cost of $43,000 on December 31, 2018. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings. ii) In 2018, the company sold for $8,000 plant assets that cost $5,000 and were 80% depreciated. The loss (not extraordinary) was incorrectly charged directly to Retained earnings. Antonio Brasileiro Company Statement of Cash Flows For the year ended December 31, 2018 Particulars Cash flows from operating activities: Net income ($57,000-$9,000-$2,000) 2,15,000 $3,36,000 Adjustment to reconcile net income to net cash provided by operating activities: $ 40,000 22,000 -0- 2,54,000 20,000 $3,36,000 Amount (S) Amount ($) 46,000 50,000
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Depreciation expense 20000 Loss on sale of plant assets 8000 5000 3000 Loss on sale of availablefors... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
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