Description of this paper

#1 A comparative balance sheet for Bouvier Corporation is presented below:




2014 2013;Assets;Cash $ 36,000 $ 31,000;Accounts receivable (net) 70,000 60,000;Prepaid insurance 25,000 17,000;Land 18,000 40,000;Equipment 70,000 60,000;Accumulated depreciation (20,000) (13,000);Total Assets $199,000 $195,000;Liabilities and Stockholders' Equity;Accounts payable $ 11,000 $ 6,000;Bonds payable 27,000 19,000;Common stock 140,000 115,000;Retained earnings 21,000 55,000;Total liabilities and stockholders' equity $199,000 $195,000;Additional information;1. Net loss for 2014 is $20,000.;2. Cash dividends of $14,000 were declared and paid in 2014.;3. Land was sold for cash at a loss of $4,000. This was the only land transaction during the year.;4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.;5. $22,000 of bonds were retired during the year at carrying (book) value.;6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000.;Instructions;Prepare a statement of cash flows for the year ended 2014, using the indirect method.


Paper#77627 | Written in 18-Jul-2015

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