The comparative balance sheets and income statement of Piura Manufacturing follow. Piura Manufacturing Comparative Balance Sheets For
Question:
The comparative balance sheets and income statement of Piura Manufacturing follow. Piura Manufacturing Comparative Balance Sheets For the Years Ended June 30, 20X1 and 20X2 1 20X1 20X2 2 Assets: 3 Cash $72,000.00 $146,400.00 4 Accounts receivable 44,000.00 48,000.00 5 Inventory 64,000.00 44,000.00 6 Plant and equipment 104,000.00 112,000.00 7 Accumulated depreciation (52,000.00) (48,000.00) 8 Land 20,000.00 20,000.00 9 Total assets $252,000.00 $322,400.00 10 Liabilities and equity: 11 Accounts payable $32,000.00 $48,000.00 12 Wages payable 4,000.00 2,400.00 13 Bonds payable 24,000.00 16,000.00 14 Preferred stock (no par) 4,000.00 12,000.00 15 Common stock 30,000.00 36,000.00 16 Paid-in capital in excess of par 50,000.00 76,000.00 17 Retained earnings 108,000.00 132,000.00 18 Total liabilities and equity $252,000.00 $322,400.00 Piura Manufacturing Income Statement For the Year Ended June 30, 20X2 1 Sales $320,000.00 2 Cost of goods sold (200,000.00) 3 Gross margin $120,000.00 4 Operating expenses (88,000.00) 5 Net income $32,000.00 Additional transactions for 20X2 were as follows: A. Cash dividends of $8,000 were paid. B. Equipment was acquired by issuing common stock with a par value of $6,000. The fair market value of the equipment is $32,000. C. Equipment with a book value of $12,000 was sold for $6,000. The original cost of the equipment was $24,000. The loss is included in operating expenses. D. Two thousand shares of preferred stock were sold for $4 per share.
Need help with #3 question:
3. Prepare a statement of cash flows using a worksheet similar to the one shown in Example 14.8 (p. 804). (Note: Begin by entering the applicable income statement amounts. Use a minus sign to indicate a negative amount. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
Worksheet: Piura Manufacturing |
For the Year Ended June 30, 20X2 |
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Piura Manufacturing |
Statement of Cash Flows |
For the Year Ended June 30, 20X2 |
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19 | Noncash investing and financing activities: | ||
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Cornerstones of Managerial Accounting
ISBN: 9780538473460
4th edition
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger