# P13-9A_Sinjh Inc._Cash_Flow Statement

Question # 00005808 Posted By: ACCOUNTS_GURU Updated on: 12/26/2013 11:58 PM Due on: 12/31/2014
Subject Accounting Topic Accounting Tutorials:
Question

P13-9A Condensed financial data of sinjh Inc. follow.

 Sinjh Inc. Comparative Balance Sheets December 31 Assets 2014 2013 Cash \$100,350 \$ 48,400 Accounts receivable 92,800 33,000 Inventory 112,500 102,850 Prepaid expenses 29,300 26,000 Long-term investments 140,000 114,000 Plant assets 265,000 242,500 Accumulated depreciation (47,000) (52,000) Total \$692,950 \$514,750 Liabilities and Stockholders' Equity Accounts payable \$112,000 \$ 67,300 Accrued expenses payable 16,500 17,000 Bonds payable 110,000 150,000 Common stock 220,000 175,000 Retained earnings 234,450 105,450 Total " \$692,950 \$514,750 Sinjh Inc Sales revenue Gain on disposal of plant assets \$392,780 5,000 Less: Cost of goods sold 135,460 Operating expenses, excluding depreciation 12,410 Depreciation expense 45,000 Income tax expense 27,280 Interest expense 4,730 224,880 Net income \$172,900

1. New plant assets costing \$80,000 were purchased for cash during the year.

2. Old plant assets having an original cost of \$57,500 and accumulated depreciation of \$50,000 were sold for \$12,500 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of \$43,900 was declared and paid during the year,

Instructions

Prepare a statement of cash flows using the indirect method.

P13-10A – Data for Sigh Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertains to Merchandise Creditors.

Prepare a statement of cash flows using the direct method.

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