P13-9A_Sinjh Inc._Cash_Flow Statement
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 |
Additional information:
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.
-
Rating:
/5
Solution: P13-9A_Sinjh Inc._Cash_Flow Statement