The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $146,190.00 $179,070.00 4 Accounts receivable (net) 224,940.00 241,100.00 5 Merchandise inventory 322,390.00 299,700.00 6 Prepaid expenses 12,670.00 9,430.00 7 Equipment 655,160.00 537,730.00 8 Accumulated depreciation-equipment (170,790.00) (131,900.00) 9 Total assets $1,190,560.00 $1,135,130.00 10 Liabilities and Stockholders’ Equity 11 Accounts payable (merchandise creditors) $250,640.00 $237,300.00 12 Mortgage note payable 0.00 336,600.00 13 Common stock, $10 par 73,000.00 23,000.00 14 Excess of paid-in capital over par 500,000.00 310,000.00 15 Retained earnings 366,920.00 228,230.00 16 Total liabilities and stockholders’ equity $1,190,560.00 $1,135,130.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $291,590. b. Depreciation reported on the income statement, $83,790. c. Equipment was purchased at a cost of $162,330, and fully depreciated equipment costing $44,900 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 10,000 shares of common stock were issued at $24 for cash. f. Cash dividends declared and paid, $152,900. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required
The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $146,190.00 $179,070.00 4 Accounts receivable (net) 224,940.00 241,100.00 5 Merchandise inventory 322,390.00 299,700.00 6 Prepaid expenses 12,670.00 9,430.00 7 Equipment 655,160.00 537,730.00 8 Accumulated depreciation-equipment (170,790.00) (131,900.00) 9 Total assets $1,190,560.00 $1,135,130.00 10 Liabilities and Stockholders’ Equity 11 Accounts payable (merchandise creditors) $250,640.00 $237,300.00 12 Mortgage note payable 0.00 336,600.00 13 Common stock, $10 par 73,000.00 23,000.00 14 Excess of paid-in capital over par 500,000.00 310,000.00 15 Retained earnings 366,920.00 228,230.00 16 Total liabilities and stockholders’ equity $1,190,560.00 $1,135,130.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $291,590. b. Depreciation reported on the income statement, $83,790. c. Equipment was purchased at a cost of $162,330, and fully depreciated equipment costing $44,900 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 10,000 shares of common stock were issued at $24 for cash. f. Cash dividends declared and paid, $152,900. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12A: The Statement Of Cash Flows
Section: Chapter Questions
Problem 3P
Related questions
Question
The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
1
|
|
Dec. 31, 20Y8
|
Dec. 31, 20Y7
|
2
|
Assets
|
|
|
3
|
Cash
|
$146,190.00
|
$179,070.00
|
4
|
Accounts receivable (net)
|
224,940.00
|
241,100.00
|
5
|
Merchandise inventory
|
322,390.00
|
299,700.00
|
6
|
Prepaid expenses
|
12,670.00
|
9,430.00
|
7
|
Equipment
|
655,160.00
|
537,730.00
|
8
|
|
(170,790.00)
|
(131,900.00)
|
9
|
Total assets
|
$1,190,560.00
|
$1,135,130.00
|
10
|
Liabilities and
|
|
|
11
|
Accounts payable (merchandise creditors)
|
$250,640.00
|
$237,300.00
|
12
|
Mortgage note payable
|
0.00
|
336,600.00
|
13
|
Common stock, $10 par
|
73,000.00
|
23,000.00
|
14
|
Excess of paid-in capital over par
|
500,000.00
|
310,000.00
|
15
|
Retained earnings
|
366,920.00
|
228,230.00
|
16
|
Total liabilities and stockholders’ equity
|
$1,190,560.00
|
$1,135,130.00
|
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
a. | Net income, $291,590. |
b. | Depreciation reported on the income statement, $83,790. |
c. | Equipment was purchased at a cost of $162,330, and fully depreciated equipment costing $44,900 was discarded, with no salvage realized. |
d. | The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. |
e. | 10,000 shares of common stock were issued at $24 for cash. |
f. | Cash dividends declared and paid, $152,900. |
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, decreases in cash and a net |
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