Solution-Make a statement of cash flows for Ehrlich Company

Make a statement of cash flows for Ehrlich Company

Assignment Help Accounting Basics

Reference no: EM133100983

Problem - The balance sheets for Ehrlich Company showed the following information. Additional information concerning transactions and events during 2021 are presented below.

Ehrlich Company Balance Sheet December 31
	2021	2020
Cash	$30,900	$10,200
Accounts receivable (net)	43,300	20,300
Inventory	31,000	40,000
Supplies	4,000	2,000
Long-term investments	0	15,000
Property, plant & equipment	236,500	150,000
Accumulated depreciation	(37,700)	(25,000)
	$308,000	$212,500
Accounts payable	$17,000	$26,500
Accrued liabilities	21,000	17,000
Long-term notes payable	110,000	50,000
Common stock	95,000	90,000
Retained earnings	65,000	29,000
	$308,000	$212,500

Additional data -

1. Net income for the year 2021, $61,000.

2. Depreciation on plant assets for the year, $12,700.

3. Sold the long-term investments for $33,000.

4. Paid dividends.

5. Purchased machinery costing $26,500, paid cash.

6. Purchased machinery and gave a $60,000 long-term note payable.

Required - Make a statement of cash flows (using the indirect method) for 2021 for Ehrlich Company. Show your calculations.

Reference no: EM133100983

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Make a statement of cash flows for Ehrlich Company

Reference no: EM133100983

Reference no: EM133100983

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