- Problem 13 14 Algo Prepare And Interpret A Statement Of Cash Flows Lo13 1 Lo13 21 A Comparative Balance Sheet For Lo 1 (92.38 KiB) Viewed 75 times
Problem 13-14 (Algo) Prepare and Interpret a
Statement of Cash Flows [LO13-1, LO13-21 A comparative balance sheet for Lomax
Company containing data for the last two years is as follows: Lonax
Company Comparative Balance Sheet This Year Last Year $ 77,600 602,800 615, 2ee 14.see 1,309,eee 2,400,000 622,200 1,777,800 92,600 126,eee $ 3,305,400 $ 54,888 625,000 426,000 8,888 1,113,800 1,824,280 565,482 1,258,600 148,888 73,880 $ 2,593,480 Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Loans to subsidiaries Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Connon stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 879,6ee 28,600 148,800 1,249,eee 658,eee 1,699,00 $ 576,880 47,400 122,880 746,200 418,00 1,164,200 1,182.eee 504,400 1,6e6,480 $ 3,305,400 1,886,880 423,200 1,429,262 $ 2,593,480 The following additional Information is available about the
company's activities during this year: a. The
company declared and paid a cash dividend this year. b. Bonds with a principal balance of $386,000 were repaid during this year. c. Equipment was sold during this year for $73.000. The equipment had cost $142000 and had $47,200 in accumulated depreciation on the date of sale. d. Long-term Investments were sold during the year for $122.000. These investments had cost $55,400 when purchased several years ago. e. The subsidiaries did not repay any outstanding loans during the year. f. Lomax did not repurchase any of its own stock during the year. The
company reported net Income this year as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating inconte Nonoperating itens: Gain on sale of investments $ 66,6ee Loss on sale of equipment (21,800 Income before taxes Income taxes Net income $ 3,120,eee 1,934,400 1,185,600 961,888 223,880 44,800 268,600 86,eee $ 182,689 Required: 1. Using the Indirect method. prepare a
statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.)
Required: 1. Using the Indirect method. prepare a
statement of cash flows for this year. (List any deduction in cash outflows as negative amounts.) Lomax
Company Statement of Cash Flows Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation Gain on sale of investments Loss on sale of equipment Decrease in accounts receivable Increase in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable 0 0 Investing activities Financing activities: 0 이 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0