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Edwards, Inc. has prepared the following comparative balance sheets

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Edwards, Inc. has prepared the following comparative balance sheets;for 2003 and 2004;2004 2003;????? ????;Cash $ 198,000 $102,000;Receivables 106,000 78,000;Inventory 100,000 120,000;Prepaid expenses 12,000 18,000;Plant assets 840,000 700,000;Accumulated depreciation (300,000) (250,000);Patent 102,000 116,000;??????? ?????;$1,058,000 $884,000;Accounts payable $ 102,000 $112,000;Accrued liabilities 40,000 28,000;Mortgage payable ??? 300,000;Preferred stock 350,000 ???;Additional paid-in capital??preferred 80,000 ???;Common stock 400,000 400,000;Retained earnings 86,000 44,000;??????? ?????;$1,058,000 $884,000;1. The Accumulated Depreciation account has been credited only for;the depreciation expense for the period.;2. The Retained Earnings account has been charged for dividends of;$92,000 and credited for the net income for the year.;The income statement for 2004 is as follows;Sales $1,320,000;Cost of sales 726,000;??????;Gross profit 594,000;Operating expenses 460,000;??????;Net income $ 134,000;INSTRUCTIONS;(a) From the information above, prepare a statement of cash flows;(indirect method) for Edwards, Inc. for the year ended;December 31, 2004.;(b) From the information above, prepare a schedule of cash provided;by operating activities using the direct method.

 

Paper#81524 | Written in 18-Jul-2015

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