P12-11A The comparative balance sheets for Spicer Company as of December 31 are presented below. SPICER...

 

Transcribed Image Text:

P12-11A The comparative balance sheets for Spicer Company as of December 31 are presented below. SPICER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 $ 68,000 50,000 151,450 15,280 145,000 200,000 (60,000) 225,000 Cash $ 45,000 58,000 142,000 21,000 130,000 200,000 (40,000) 155,000 (35,000) Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment (45,000) $749,730 Total $676,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings $ 44,730 300,000 200,000 205,000 $ 36,000 300,000 160,000 180,000 Total $749,730 $676,000 Additional information: 1. Operating expenses include depreciation expense of $42,000. 2. Land was sold for cash at book value. 3. Cash dividends of $12,000 were paid. 4. Net income for 2017 was $37,000. 5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash. 6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000. Instructions Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method. P12-11A The comparative balance sheets for Spicer Company as of December 31 are presented below. SPICER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 $ 68,000 50,000 151,450 15,280 145,000 200,000 (60,000) 225,000 Cash $ 45,000 58,000 142,000 21,000 130,000 200,000 (40,000) 155,000 (35,000) Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment (45,000) $749,730 Total $676,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings $ 44,730 300,000 200,000 205,000 $ 36,000 300,000 160,000 180,000 Total $749,730 $676,000 Additional information: 1. Operating expenses include depreciation expense of $42,000. 2. Land was sold for cash at book value. 3. Cash dividends of $12,000 were paid. 4. Net income for 2017 was $37,000. 5. Equipment was purchased for $92,000 cash. In addition, equipment costing $22,000 with a book value of $10,000 was sold for $8,000 cash. 6. 40,000 shares of $1 par value common stock were issued in exchange for land with a fair value of $40,000. Instructions Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.

Answer rating: 100% (QA)

Spicer Company Statement of Cash flows for the year ended December 31 2017 Cash Flows fro... View the full answer