Equipment was purchased for cash in addition equipment

Assignment Help Accounting Basics

Reference no: EM13570743

The comparative balance sheets for Ashley Company as of December 31 are presented below.

ASHLEY COMPANY
Comparative Balance Sheets
December 31
Assets	2013	2012
Cash	$70,600	$45,220
Accounts receivable	43,599	61,607
Inventory	151,897	141,806
Prepaid expenses	15,290	21,335
Land	105,700	130,600
Equipment	228,359	155,043
Acc. depr. - equipment	(45,192)	(35,358)
Building	199,500	199,500
Acc. depr. - building	(59,850)	(39,900)
Total	$709,903	$679,853

Liabilities and Stockholders' Equity
Accounts payable	$47,460	$39,754
Bonds payable	261,050	300,300
Common stock, $1 par	197,650	158,400
Retained earnings	203,743	181,399
Total	$709,903	$679,853

Additional information:

Operating expenses include depreciation expense of $41,747 and charges from prepaid expenses of $6,045.
Land was sold for cash at book value.
Cash dividends of $14,684 were paid.
Net income for 2011 was $37,028.
Equipment was purchased for cash. In addition, equipment costing $22,162 with a book value of $10,199 was sold for $6,272 cash.
Bonds were converted at face value by issuing 39,250 shares of $1 par value common stock.

Instructions: Prepare a statement of cash flows for the year ended December 31, 2013, using the indirect method.

Reference no: EM13570743

Questions Cloud

Two direct labor hours are required for each product unit : derf company applies overhead on the basis of direct labor hours. two direct labor hours are required for each product

Team shirts inc had net cash from operating activities of : 1.team shirts inc. had net cash from operating activities of 50000. it paid 40000 to buy a new computer system by

The fiberglass resin is initially molded to the shape of a : the tippa canoe company makes fiberglass canoes. the fiberglass resin is initially molded to the shape of a canoe then

Arrow industries employs a standard cost system in which : arrow industries employs a standard cost system in which direct materials inventory is carried at standard cost. arrow

Equipment was purchased for cash in addition equipment : the comparative balance sheets for ashley company as of december 31 are presented below.ashley companycomparative

The alphonse company allocates fixed overhead costs by : the alphonse company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours.

Sonimad sawmill manufactures two lumber products from a : sonimad sawmill manufactures two lumber products from a joint milling process. the two products developed are mine

The lifo inventory method has been used the fifo inventory : valman company is considering purchasing ekc company. ekcs balance sheet at december 31 2013 is as followscash 56000

The dean of the school of natural science is trying to : the dean of the school of natural science is trying to decide whether to purchase a copy machine to place in the lobby

User Account

All Pages