The comparative balance sheet of Air Glide Athletic Apparel Co. at December 31, 2008 and 2007, is

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The comparative balance sheet of Air Glide Athletic Apparel Co. at December 31, 2008 and 2007, is as follows:


The comparative balance sheet of Air Glide Athletic Apparel Co.


Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2008 are as follows:
a. Net income, $81,300.
b. Depreciation reported on the income statement, $26,100.
c. Equipment was purchased at a cost of $50,900, and fully depreciated equipment costing $14,000 was discarded, with no salvage realized.
d. The mortgage note payable was not due until 2011, but the terms permitted earlier payment without penalty.
e. 5,000 shares of common stock were issued at $17 for cash.
f. Cash dividends declared and paid, $48,000.

Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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