Statement of Cash Flows Comparative Trial Balances are given below for Michaels Company 12/31/2019 12/31/2018 Cash 38,000
Question:
- Statement of Cash Flows
Comparative Trial Balances are given below for Michaels Company
12/31/2019 | 12/31/2018 | |
Cash | 38,000 | 27,000 |
Receivables | 56,000 | 48,000 |
Inventory | 120,000 | 127,000 |
Equipment | 328,000 | 235,000 |
Accumulated Depreciation | (82,000) | (71,000) |
Accounts Payable | (68,000) | (55,000) |
Notes Payable | (50,000) | 0 |
Bonds Payable | (75,000) | (100,000) |
Common Stock | (150,000) | (100,000) |
Retained Earnings | (117,000) | (111,000) |
The Income statement for Michaels for the year ended December 31, 2019 is given below:
Sales | 385,000 |
Gain on sale of equipment | 2,000 |
Total Revenues | 387,000 |
Cost of goods sold | 197,000 |
Depreciation Expense | 23,000 |
Other Operating Expenses | 127,000 |
Total Expenses | 347,000 |
Net Income | 40,000 |
Other Information
- Equipment costing $25,000 with a book value of $13,000 was sold for $15,000
- Bonds were retired during the period and additional shares of common stock were sold.
- Equipment costing $118,000 was purchased during the year. $68,000 was paid in cash and a note payable was issued for the balance.
- Dividends of $34,000 were paid during the period.
Using this information and the T accounts, prepare a Statement of Cash Flows.
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso