Prepare a Statement of Cash Flows for Banana World using the Comparative Balance Sheet and additional...
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Prepare a Statement of Cash Flows for Banana World using the Comparative Balance Sheet and additional information. The year ended on December 31, 2025 and the indirect method wil be used. Fill in the dollar difference between the years. Next fill in the section of the Statement of Cash Flows that line will appear in. Lastly, identify if it will be added or subtracted in that section. The cells that are grey are to be completed. Banana World Comparative Balance Sheet December 31, 2025 and 2024 2024 Difference (0, I, F, 2025 Section Add +/ Assets Subtract - Current Assets: NC) Cash 523,693 $ 12,125 Short-term Investments, net 23,840 Accounts Receivable, net Merchandise Inventory 2,422 7,600 355 Office Supplies 60 165 Prepaid Rent 2,000 Property, Plant and Equipment: Land 85,000 Building Delivery Truck Office Furniture and Equipment 155,000 610,000 12,000 35,000 12,000 150,000 (35,180) $1,442,190 $ 153,040 Accumulated Depreciation - PP&E (850) Total Assets Liabilities Current Liabilities: Accounts Payable Utilities Payable 5,195 $ 3,050 745 295 Telephone Payable Wages Payable Notes Payable Interest Payable 700 325 4,250 1,250 15,000 350 50 Unearned Revenue 500 350 Long-term Liabilities: Notes Payable 7,200 Mortgage Payable Bonds Payable Discount on Bonds Payable 7,200 405,000 210,000 (1,270) 647,670 $ Total Liabilities 12,520 Stockholders' Equity Paid-In Capital: Preferred Stock 60,000 10,000 186,000 150,000 388,520 Paid-In-Capital in Excess of Par-Preferred Common Stock 136,000 Paid-In-Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity 4,520 140,520 $1,442,190 $ 153,040 794,520 Total Liabilities and Stockholders' Equity Additional Information: 1. The Income Statement for 2025 included the following items: Section (0, Add + / I, F, NC) Subtract - a. Net Income 417,000 34,330 b. Depreciation Expense C. Amortization on Bonds Payable 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except for the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable. Face Value of Bonds: Cash received for Bonds: 4. The company distributed 4,000 shares of common stock in a stock dividend when the market value was $4.50 per share. Other dividends paid in cash: 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the Notes Payable in 2025 is considered a financing activity because it does not relate to operations. 254 $ 210,000 208,476 15,000 Requirement Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method. The cells that are grey are to be completed. Adjustments to Reconcile Net Income to Net Cash Prepare a Statement of Cash Flows for Banana World using the Comparative Balance Sheet and additional information. The year ended on December 31, 2025 and the indirect method wil be used. Fill in the dollar difference between the years. Next fill in the section of the Statement of Cash Flows that line will appear in. Lastly, identify if it will be added or subtracted in that section. The cells that are grey are to be completed. Banana World Comparative Balance Sheet December 31, 2025 and 2024 2024 Difference (0, I, F, 2025 Section Add +/ Assets Subtract - Current Assets: NC) Cash 523,693 $ 12,125 Short-term Investments, net 23,840 Accounts Receivable, net Merchandise Inventory 2,422 7,600 355 Office Supplies 60 165 Prepaid Rent 2,000 Property, Plant and Equipment: Land 85,000 Building Delivery Truck Office Furniture and Equipment 155,000 610,000 12,000 35,000 12,000 150,000 (35,180) $1,442,190 $ 153,040 Accumulated Depreciation - PP&E (850) Total Assets Liabilities Current Liabilities: Accounts Payable Utilities Payable 5,195 $ 3,050 745 295 Telephone Payable Wages Payable Notes Payable Interest Payable 700 325 4,250 1,250 15,000 350 50 Unearned Revenue 500 350 Long-term Liabilities: Notes Payable 7,200 Mortgage Payable Bonds Payable Discount on Bonds Payable 7,200 405,000 210,000 (1,270) 647,670 $ Total Liabilities 12,520 Stockholders' Equity Paid-In Capital: Preferred Stock 60,000 10,000 186,000 150,000 388,520 Paid-In-Capital in Excess of Par-Preferred Common Stock 136,000 Paid-In-Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity 4,520 140,520 $1,442,190 $ 153,040 794,520 Total Liabilities and Stockholders' Equity Additional Information: 1. The Income Statement for 2025 included the following items: Section (0, Add + / I, F, NC) Subtract - a. Net Income 417,000 34,330 b. Depreciation Expense C. Amortization on Bonds Payable 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except for the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable. Face Value of Bonds: Cash received for Bonds: 4. The company distributed 4,000 shares of common stock in a stock dividend when the market value was $4.50 per share. Other dividends paid in cash: 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the Notes Payable in 2025 is considered a financing activity because it does not relate to operations. 254 $ 210,000 208,476 15,000 Requirement Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method. The cells that are grey are to be completed. Adjustments to Reconcile Net Income to Net Cash
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Banana World Statement of Cash Flow Indirect Method For the Year Ended December 31 2025 Cash Flow fr... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
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