P14-34A

784 chapter 14 Transaction Data for 2018: Issuance of common stock for cash Depreciation expense Purchase of equipment with cash Acquisition of land by issuing long-term notes payable 38,000Payment of notes payable 24,000 Payment of cash dividends 74,000 119,000 54,000 $ 46,100 50,000 62,000 4,500 68,500 Issuance of notes payable to borrow cash Gain on sale of building Net income Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities Preparing the statement of cash flows-indirect method with non-cash transactions P14-34A Learning Objective 2 The 2018 income statement and comparative balance shect of Re follow Net Cash Prov. by Op Act. $125,100 Income Statement 31, 2018 Year Ended s 440,000 209,200 Net Sales Revenue Cost of Prepare Morganson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities Learning Objective 2 P14-34A Preparing the statement of cash flows-indirect method witlh non-cash transactions The 2018 income statement and comparative balance sheet of Rolling Hills, Inc. follow Net Cash Prov by Op. Act. $125,100 ROLLING HILLS, INC. Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses 209,200 230,800 $ 77,400 14 400 10,200 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses 102,000 Other 8,700 (21,100) Interest Revenue Interest Expense (12,400) ROLLING HILLS, INC Income Statement Year Ended December 31, 2018 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: 440,000 209,200 230,800 Salaries Expense Depreciation Expense-Plant Assets Other Operating Expenses Total Operating Expenses $ 77,400 14,400 10,200 102,000 128,800 Operating Income Other Income and (Expenses): Interest Revenue Interest Expense Total Other Income and (Expenses) 8.700 (21,100) (12,400) 16,400 20,000 $ 96,400 Net Income Before Income Taxes Income Tax Expense Net Income K785> ROLLING HILLS, INC. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: s26,900 26,500 79,800 15,700 25,400 91,500 Cash Accounts Receivable Merchandise Inventory Long-term Assets: 14,000 114,650 Accumulated Depreciation- Plant Assets (18,940)(17.950) 35,100 124,840 Land Plant Assets $243,300 $ 274,200 Total Assets Liabilities Current Liabilities s 35,700S 30,400 30,300 Accounts Payable Accrued Liabilities 28,700 Long term Liabilities 108,000 168,200 9,000 143,400 Notes Payable otal Liabitities Stockholders' Equity 88900 41 900 130,800 64:500 Common Stock no par 0.100 24,600 Retained Earnings otal Stockholders Equity :T otai Liabilities and Stockholders' Equity 3274,200 ...-5243.300 Additionally, Rolling Hills purchased land of S2 1,100 by financing it 100% with long- term notes payable during 2018. During the year, there were no sales of land, no retirements of stock, and no treasury stock transactions. A plant asset was disposed of for $0. The cost and the accumulated depreciation of the disposed asset was $13,410, The plant acquisition was for cash Requirements 1. Prepare the 2018 statement of cash flows, formatting operating activities by the indiret method. 2. How will what you learned in this problem help you evaluate an investment? 784 chapter 14 Transaction Data for 2018: Issuance of common stock for cash Depreciation expense Purchase of equipment with cash Acquisition of land by issuing long-term notes payable Book value of building sold $ 38,000 24,000 74,000 119,000 Payment of notes payable Payment of cash dividends Issuance of notes payable to borrow cash Gain on sale of building $ 46, 100 50,000 62,000 4,500 68,500 54,000 Net income Prepare Morganson' statement of cash flows using the indirect method Include an accompanying schedule of non-cash investing and financing activities Learning Objective 2 P14-34A Preparing the statement of cash fnows indirect method with non-cash transactions The 2018 income statement and comparative halance sheet of Riling Hill, Inc tollow Net Cash Prov. by Op. Act. $125,100 Income Statement Year Ended December 31. 2018 S 440,000 209.200 230,800 Net Sales Re Cost of Goods Sold Gross Profit Operating Expenses Salaries Experise 14.400