- 4a Statement Of Cash Flows Indirect Method The Sky Company S Income Statement And Compara Tive Balance Sheets As Of 1 (77.23 KiB) Viewed 48 times
- 4a Statement Of Cash Flows Indirect Method The Sky Company S Income Statement And Compara Tive Balance Sheets As Of 2 (73.63 KiB) Viewed 48 times
- 4a Statement Of Cash Flows Indirect Method The Sky Company S Income Statement And Compara Tive Balance Sheets As Of 3 (72.74 KiB) Viewed 48 times
continued from previous page SKY COMPANY Balance Sheets Liabilities and Stockholders' Equity Accounts payable. Interest payable Income tax payable Bonds payable. Preferred stock ($100 par value) Common stock ($5 par value) Paid-in-capital in excess of par value-Common. Retained earnings Unrealized gain on investments. Total liabilities and stockholders' equity Dec. 31, 2019 $ 21,000 6,000 8,000 135,000 100,000 379,000 133,000 167,000 $949,000 Dec. 31, 2018 $ 18,000 5,000 12,000 130,000 7. Declared and paid a $53,000 cash dividend. 8. Issued 3,000 shares of common stock for cash at $8 per share. 9. Recorded depreciation of $16,000 on buildings and $23,000 on equipment. Required 75,000 364,000 124,000 55,000 7,000 $790,000 During the year, the following transactions occurred: 1. Sold long-term investments costing $50,000 for $60,000 cash. Unrealized gains totaling $7,000 related to these investments had been recorded in earlier years. At year-end, the fair value adjust- ment and unrealized gain account balances were eliminated. 2. Purchased land for cash. 3. Capitalized an expenditure made to improve the building. 4. Sold equipment for $14,000 cash that originally cost $46,000 and had $27,000 accumulated depreciation. 5. Issued bonds payable at face value for cash. 6. Acquired a patent with a fair value of $25,000 by issuing 250 shares of preferred stock at par value. a. Calculate the change in cash and cash equivalents that occurred during 2019. b. Prepare a statement of cash flows using the indirect method. P12-5A. Analyzing Cash Flow Ratios Pearce Enterprises reported the following information for the past
128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 88588EFNEEEEEFES- 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 The adjustments to convert the net income of $165,000 to cash provided by operating activities of $169,000 are shown in the statement of cash flows Sale of investments: $60,000 given in problem data Purchase of land Improvements to building: Sale of equipment Issuance of bonds payable Acquisition of patent in exchange for preferred stock Issuance of common stock Payment of dividends Other Analysis -Long term investments available for sale -Fair value adjustment to investments - Accumulated Depreciation - building Equipment decreased Accumulated depreciation for equipment Example Insert information from text