The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is asfollows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,600 $ 337,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,400 609,600Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918,600 865,800Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,600 26,400Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,000 1,386,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980,000 $ 990,000Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . (397,200) (366,000)Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660,600 529,800Accumulated depreciation—equipment . . . . . . . . . . . . . . . . . . . . (133,200) (162,000)Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,042,400 $4,217,400Liabilities and Stockholders’ EquityAccounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 594,000 $ 631,200Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,400 21,600Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000 0Common stock, $20 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000 180,000Paid-in capital: Excess of issue price over par—common stock . . . . . . . . 950,000 810,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,822,000 2,574,600Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . $5,042,400 $4,217,400The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2are as follows:ACCOUNT Land ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceRealized $456,000 cashfrom sale120Jan.Apr.1,386,000396,000 990,000ACCOUNT Buildings ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceAcquired for cash120Jan.Apr.990,000990,000 1,980,000ACCOUNT Accumulated Depreciation—Buildings ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceDepreciation for year131Jan.Dec.366,00031,200 397,200ACCOUNT Equipment ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceDiscarded, no salvagePurchased for cash12611Jan.Aug.529,800463,800660,60066,000196,800 ACCOUNT Accumulated Depreciation—Equipment ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceEquipment discardedDepreciation for year12631Jan.Dec.162,00096,00037,200 133,20066,000ACCOUNT Bonds Payable ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2May 1 Issued 20-year bonds 330,000 330,000ACCOUNT Common Stock, $20 par ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceIssued 7,000 shares of commonstock for $40 per share17Jan.Dec.180,000140,000 320,000ACCOUNT Paid-In Capital in Excess of Par—Common Stock ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceIssued 7,000 shares of commonstock for $40 per share17Jan.Dec.810,000140,000 950,000ACCOUNT Retained Earnings ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceNet incomeCash dividends13131Jan.Dec.2,574,6002,901,2002,822,000326,60079,200InstructionsPrepare a statement of cash flows, using the indirect method of presenting cash flowsfrom operating activities.
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as
follows:
Dec. 31, 20Y2 Dec. 31, 20Y1
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,600 $ 337,800
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,400 609,600
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918,600 865,800
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,600 26,400
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,000 1,386,000
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980,000 $ 990,000
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660,600 529,800
Accumulated depreciation—equipment . . . . . . . . . . . . . . . . . . . . (133,200) (162,000)
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,042,400 $4,217,400
Liabilities and
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 594,000 $ 631,200
Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,400 21,600
Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330,000 0
Common stock, $20 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320,000 180,000
Paid-in capital: Excess of issue price over par—common stock . . . . . . . . 950,000 810,000
Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . $5,042,400 $4,217,400
The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2
are as follows:
ACCOUNT Land ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Realized $456,000 cash
from sale
1
20
Jan.
Apr.
1,386,000
396,000 990,000
ACCOUNT Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Acquired for cash
1
20
Jan.
Apr.
990,000
990,000 1,980,000
ACCOUNT Accumulated Depreciation—Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Depreciation for year
1
31
Jan.
Dec.
366,000
31,200 397,200
ACCOUNT Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Discarded, no salvage
Purchased for cash
1
26
11
Jan.
Aug.
529,800
463,800
660,600
66,000
196,800
ACCOUNT Accumulated Depreciation—Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Equipment discarded
Depreciation for year
1
26
31
Jan.
Dec.
162,000
96,000
37,200 133,200
66,000
ACCOUNT Bonds Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
May 1 Issued 20-year bonds 330,000 330,000
ACCOUNT Common Stock, $20 par ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Issued 7,000 shares of common
stock for $40 per share
1
7
Jan.
Dec.
180,000
140,000 320,000
ACCOUNT Paid-In Capital in Excess of Par—Common Stock ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Issued 7,000 shares of common
stock for $40 per share
1
7
Jan.
Dec.
810,000
140,000 950,000
ACCOUNT Retained Earnings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Net income
Cash dividends
1
31
31
Jan.
Dec.
2,574,600
2,901,200
2,822,000
326,600
79,200
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows
from operating activities.
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