The comparative balance sheet of Venice Company, Inc. for December 31, Year 2 and Year 1...

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The comparative balance sheet of Venice Company, Inc. for December 31, Year 2 and Year 1 appears below: 12/31/Year 2 12/31/Year 1 $ 53,000 37,000 108,500 573,200 (142,000) $629.700 $ 120,000 48,000 100,000 450,000 (176.000) $542.000 Cash.. Accounts receivable (net).. Inventories... Equipment.. Accumulated depreciation-equipment.. Totals $ 43,800 100,000 285,000 55,000 S 62,500 Accounts payable.. Bonds payable, due June 30, Year 2... Common stock, $10 par.. Paid-in capital in excess of par -- common stock. Retained earnings... 335,000 74,000 158.200 $629.700 58.200 $542.000 Totals The income statement for the year ended December 31, Year 2 appears below: Sales.. $625,700 Cost of merchandise sold.. 340.000 285,700 Gross profit... Operating expenses: Depreciation expense.. Other operating expenses.. Operating Income.. Interest expense... Income before income tax. $26,000 68.000 94.000 191,700 6.000 185,700 60.700 S125.000 Income tax.. Net income.. Additional data for the year ended December 31, Year 2 are as follows: (a) Fully depreciated equipment costing S60,000 was scrapped at no salvage value, and new equipment was purchased for $183,200. (b) Bonds payable for $100,000 were retired at face value. (c) 5,000 shares of common stock were issued for cash at S13.80 per share. (d) Cash dividends declared and paid were $25,000. Required: Prepare a statement of cash flows (using the indirect method) for Venice Company for the year ended December 31, Year 2. The statement must be prepared in type and neat. This assignment is worth 40 points on exam 3, and must be turned in when due. The comparative balance sheet of Venice Company, Inc. for December 31, Year 2 and Year 1 appears below: 12/31/Year 2 12/31/Year 1 $ 53,000 37,000 108,500 573,200 (142,000) $629.700 $ 120,000 48,000 100,000 450,000 (176.000) $542.000 Cash.. Accounts receivable (net).. Inventories... Equipment.. Accumulated depreciation-equipment.. Totals $ 43,800 100,000 285,000 55,000 S 62,500 Accounts payable.. Bonds payable, due June 30, Year 2... Common stock, $10 par.. Paid-in capital in excess of par -- common stock. Retained earnings... 335,000 74,000 158.200 $629.700 58.200 $542.000 Totals The income statement for the year ended December 31, Year 2 appears below: Sales.. $625,700 Cost of merchandise sold.. 340.000 285,700 Gross profit... Operating expenses: Depreciation expense.. Other operating expenses.. Operating Income.. Interest expense... Income before income tax. $26,000 68.000 94.000 191,700 6.000 185,700 60.700 S125.000 Income tax.. Net income.. Additional data for the year ended December 31, Year 2 are as follows: (a) Fully depreciated equipment costing S60,000 was scrapped at no salvage value, and new equipment was purchased for $183,200. (b) Bonds payable for $100,000 were retired at face value. (c) 5,000 shares of common stock were issued for cash at S13.80 per share. (d) Cash dividends declared and paid were $25,000. Required: Prepare a statement of cash flows (using the indirect method) for Venice Company for the year ended December 31, Year 2. The statement must be prepared in type and neat. This assignment is worth 40 points on exam 3, and must be turned in when due.

Answer rating: 100% (QA)

Venice Company Cash flow statement For the year ended Year 2 Cash flows from operating activities Am... View the full answer