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ACFI 492 Prepare a statement of cash flows (indirect method

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ACFI 492 Prepare a statement of cash flows (indirect method;The Balance Sheets of Biden, Inc. for the years ending December 31, 2014 and 2013 are shown below;12/31/14;12/31/13;Cash;189,800;100,200;Accounts receivable;385,000;389,000;Allowance for doubtful accounts;(57,000);(43,000);Inventory;545,600;328,400;Prepaid expenses;46,000;26,000;Long-term investments;384,000;528,000;Land;750,000;450,000;Buildings;3,156,000;2,556,000;Machinery;295,000;195,000;Office equipment;116,000;144,000;Accumulated depreciation;Buildings;(152,000);(128,000);Machinery;(98,000);(78,000);Office equipment;(35,800);(47,800);5,524,600;4,419,800;Accounts payable;327,000;510,200;Accrued liabilities;98,000;26,000;Dividends payable;128,000;0;Bonds payable;800,000;0;Discount on Bonds;(24,000);0;Common stock ($10 par);876,000;720,000;Additional paid-in capital?common;2,145,000;1,921,800;Retained earnings;1,174,600;1,241,800;5,524,600;4,419,800;Additional information;1. Income Statement Data for Year Ended December 31, 2014;Income before extraordinary item $272,000;Extraordinary loss: Condemnation of land 132,000;Net income $140,000;Hint: You need to know what a condemnation is. What is the journal entry? Was there a gain or a loss? More info is regarding the land is included in note #10.);2. Cash dividends of $128,000 were declared December 15, 2014, payable January 15, 2015. A 5% stock dividend was issued March 31, 2014, when the market value was $22.00 per share.;3. The long-term investments were sold for $140,000.;4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000.;5. The following entry was made to record an exchange of an old machine for a new one;Machinery.................................................................... 160,000;Accumulated Depreciation?Machinery........................ 40,000..................................................................... Machinery 60,000.............................................................................. Cash 140,000;6. A fully depreciated copier machine (Office Equipment) which cost $28,000 was written off.;7. The company sold 12,000 shares of its common stock ($10 par) on June 15, 2014 for $25 a share. There were 87,600 shares outstanding on December 31, 2014.;8. Bonds were sold at 97 on December 31, 2014.;9. Land that was condemned had a book value of $240,000.;Instructions;Prepare a statement of cash flows (indirect method). Ignore tax effects.

 

Paper#28696 | Written in 18-Jul-2015

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