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The net changes (not balances) in the selected bal...




The net changes (not balances) in the selected balance sheet accounts of Keating Corporation for the year 2013 are shown below. Account Debit Credit Short-term investments $121,000 Accounts receivable 83,200 Allowance for doubtful accounts 13,300 Inventory 74,200 Prepaid expenses 22,800 Investment in subsidiary (equity method) 25,000 Plant and equipment 210,000 Accumulated depreciation 130,000 Accounts payable 80,700 Accrued liabilities 21,500 Deferred tax liability 15,500 8% serial bonds, long-term 70,000 Common stock, $10 par 90,000 Additional paid-in capital 150,000 Retained earnings?Appropriation for bonded indebtedness 60,000 Retained earnings?Unappropriated 38,000 An analysis of the Retained Earnings?Unappropriated account follows: Retained earnings unappropriated, December 31, 2012 $1,300,000 Add: Net income 327,000 Transfer from appropriation for bonded indebtedness 60,000 Total $1,687,000 Deduct: Cash dividends $185,000 Stock dividend 240,000 425,000 Retained earnings unappropriated, December 31, 2013 $1,262,000 1. On January 2, 2013 short-term investments (classified as available-for-sale) costing $121,000 were sold for $145,000. 2. The company paid a cash dividend on February 1, 2013. 3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2013 and 2012, respectively. 4. Major repairs of $33,000 to the equipment were correctly debited to the Accumulated Depreciation account during the year. No assets were retired during 2013. (HINT: This also impacts investing activities.) 5. The wholly owned subsidiary reported a net loss for the year of $20,000. The loss was recorded by the parent. 6. At January 1, 2013, the cash balance was $166,000. Instructions Prepare a statement of cash flows (indirect method) for the year ended December 31, 2013. Keating Corporation has no securities which are classified as cash equivalents. Keating Corporation Statement of Cash Flows For the Year Ended December 31, 2013 Increase (Decrease) in Cash Cash flows from operating activities Net income $327,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense $ ________ Net cash provided (used) by operating activities $ Cash flows from investing activities _________ Net cash provided (used) by investing activities $ Cash flows from financing activities _________ Net cash provided (used) by financing activities $ Net increase in cash $ Cash, January 1, 2013 166,000 Cash, December 31, 2013 $,thanks :),if possible, please change the date and time to Sept 6, 2012 at 9pm. thank you,thank you


Paper#5819 | Written in 18-Jul-2015

Price : $25