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Appears below in condensed form




the comparative balance sheet of Fox Company, for the current year and the preceding year ended December 31, appears below in condensed form;current year preceding year;cash $45,000 $53,500;account receivable(net) 51,300 58,000;inventories 147200 135000;investments 0 60,000;equipment 493000 375,000;accumulated;depreciation- equipment (113,700) (128,000);$622,800 $553,500;========== ===========;accounts payable $61,500 $42,600;bonds payable due 2008 100,000;common stock, $10 par 250,000 200,000;paid in capital in;excess of par_common stock 75,000 50,000;retained earnings 236,300 160,900;$622,800 $553,500;The income statement for the current year is as follows;sales 623,000;cost of merchandise sold 348,500;-------;gross profit 274,500;operating expenses;depreciation expense 24,700;other operating expenses 75,300 100,000;------ -------;income from operations 174,500;Other income;Gain on sale of investment $5,000;Other expense;interest expense 12,000 (7,000);------ -------;income before income tax $167,500;income tax 64,100;--------;net income $103,400;=========;Additional data for the current year are as follows;a) fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000;b) bonds payable for $100,000 were retired by payment at their face amount;c) 5,000 shares of common stock were issued at 15 for cash;d) cash dividends declared and paid;e) all sales are on account;prepare a statement of cash flows, using the indirect method of reporting cash flows from operating activities.


Paper#26668 | Written in 18-Jul-2015

Price : $37