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(TCO F) Preparation of statement of cash flows (fo...

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(TCO F) Preparation of statement of cash flows (format provided) The balance sheets for Tonka Corporation showed the following information. Additional information concerning transactions and events during 2010 are presented below. Tonka Corporation Balance Sheet 31-Dec-10 31-Dec-09 Cash 15,000 10,000 Current assets other than cash 85,000 58,000 Long-term investments 10,000 53,000 Plant assets 335,000 215,000 $445,000 $336,000 Accumulated depreciation 20,000 40,000 Current liabilities 40,000 22,000 Bonds payable 75,000 - Capital stock 254,000 254,000 Retained earnings 56,000 20,000 $445,000 $336,000 Additional information: Additional information: 1. Held-to-maturity securities carried at a cost of $43,000 on December 31, 2009, were sold in 2010 for $34,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2010 for $8,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $59,000. 4. Dividends paid amounted to $10,000. 5. Depreciation charged for the year was $28,000. Instructions Prepare a statement of cash flows for the year 2010 using the indirect method.,.,Can you please explain how you got the following numbers? Operating Profit before Working Capital changes 75000 Purchase of Plant Asset (180000) Cash (pur. Bal. fig) 180000

 

Paper#9589 | Written in 18-Jul-2015

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