Prepare a statement of cash flows for brown company

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Reference no: EM13513418

From the following balance sheet information and other data, prepare a statement of cash flows for Brown Company, using the indirect method:


12/31/19A

12/31/19B

Cash

$ 1,800

$ 2,830

Accounts Receivable

3,050

2,950

Prepaid Insurance

4,310

5,490

Investment in Green Company (equity method)

600

730

Investment in Blue Company (cost method)

1,000

1,000

Land

2,000

3,500

Machinery

6,060

6,240

Accumulated Depreciation

(1,070)

(1,390)

Patents

200

160

Total Assets

$17,950

$21,510

Wages Payable

$ 5,630

$ 6,040

Note Payable (Long-term)

-

1,500

Bonds Payable

2,100

1,600

Deferred Taxes Payable

300

410

Common Stock

1,000

1,000

Preferred Stock

4,000

4,300

Paid-in Capital in Excess of Par-Preferred

1,750

2,260

Retained Earnings

3,340

4,400

Treasury Stock (cost method)

(170)

-

Total Liabilities and Stockholders' Equity

$17,950

$21,510

Other Data:

(1) Net income

$1,490

(2) Depreciation expense

530

(3) Equity in Green Company net income

130

(4) Loss on sale of machinery

50

(5) Amortization of patents

40

(6) Dividends paid (cash)

430

(7) Machinery with a cost of $450 and a book value of $240 was sold for $190.

(8) Machinery was purchased for $630.

(9) Treasury stock was sold for $250 cash.

(10) Land with a fair market value of $1,500 was purchased by the issuance of a long-term note payable.

(11) Preferred stock was issued for $230 cash.

(12) The remaining changes in the Preferred Stock account and in the Paid-in-Capital in Excess of Par account resulted from the issuance of preferred stock to retire $500 of bonds payable.

Reference no: EM13513418

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