Question: Hi, please solve this question correctly. And use the particulars given in image. Please just solve it. Windsor, Inc. reported the following information for 2017.
Hi, please solve this question correctly. And use the particulars given in image. Please just solve it.
Windsor, Inc. reported the following information for 2017.
| Windsor, Inc. Comparative Balance Sheets December 31 | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Assets | 2017 | 2016 | Change Increase/Decrease | ||||||
| Cash | $71,520 | $36,090 | $35,430 | Increase | |||||
| Accounts receivable | 61,620 | 21,880 | 39,740 | Increase | |||||
| Inventory | 43,590 | 0 | 43,590 | Increase | |||||
| Prepaid expenses | 6,000 | 3,970 | 2,030 | Increase | |||||
| Land | 55,410 | 69,500 | 14,090 | Decrease | |||||
| Buildings | 198,460 | 198,460 | 0 | ||||||
| Accumulated depreciationbuildings | (21,195 | ) | (14,130 | ) | 7,065 | Increase | |||
| Equipment | 181,930 | 68,220 | 113,710 | Increase | |||||
| Accumulated depreciationequipment | (27,795 | ) | (10,000 | ) | 17,795 | Increase | |||
| Totals | $569,540 | $373,990 | |||||||
| Liabilities and Stockholders Equity | |||||||||
| Accounts payable | $42,720 | $40,400 | $2,320 | Increase | |||||
| Accrued expenses payable | 0 | 9,960 | 9,960 | Decrease | |||||
| Bonds payable | 100,600 | 150,970 | 50,370 | Decrease | |||||
| Common stock ($1 par) | 228,430 | 60,050 | 168,380 | Increase | |||||
| Retained earnings | 197,790 | 112,610 | 85,180 | Increase | |||||
| Totals | $569,540 | $373,990 | |||||||
| Windsor, Inc. Income Statement For the Year Ended December 31, 2017 | ||||
|---|---|---|---|---|
| Sales revenue | $950,360 | |||
| Cost of goods sold | $470,390 | |||
| Operating expenses | 229,730 | |||
| Interest expense | 12,120 | |||
| Loss on disposal of equipment | 1,980 | 714,220 | ||
| Income before income taxes | 236,140 | |||
| Income tax expense | 65,240 | |||
| Net income | $170,900 | |||
| Additional information: | ||
| 1. | Operating expenses include depreciation expense of $39,880. | |
| 2. | Land was sold at its book value for cash. | |
| 3. | Cash dividends of $85,720 were declared and paid in 2017. | |
| 4. | Equipment with a cost of $165,070 was purchased for cash. Equipment with a cost of $51,360 and a book value of $36,340 was sold for $34,360 cash. | |
| 5. | Bonds of $50,370 were redeemed at their face value for cash. | |
| 6. | Common stock ($1 par) of $168,380 was issued for cash. | |
Use this information to prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)



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Windsor, Inc. Statement of Cash Flows-Indirect Method Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Depreciation Expense Loss on Disposal of Equipment Increase in Accounts Receivable Increase in Inventory Decrease in Prepaid Expenses Decrease in Accounts Payable Net Cash Provided by Operating Activities Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Land Purchase of Equipment Sale of Equipment Net Cash used by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Sale of Common Stock Payment of Dividends Net Cash used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net Decrease in Cash Net Increase in Cash Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Accrued Expenses Payable Decrease in Inventory Decrease in Prepaid Expenses Depreciation Expense Gain on Disposal of Equipment Increase in Accounts Payable Increase in Accounts Receivable Increase in Accrued Expenses Payable Increase in Inventory Increase in Prepaid Expenses Loss on Disposal of Equipment Net Income Payment of Dividends Purchase of Equipment Redemption of Bonds Sale of Common Stock Sale of Equipment Sale of Land
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