Rodriquez Corporation's comparative balance sheets are presented below.
Comparative Balance Sheets
December 31
- Net income was $18,300. Dividends declared and paid were $16,400.
- Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300.
- No noncash investing and financing activities occurred during 2020.
Instructions
- Prepare a statement of cash flows for 2020 using the indirect method
- Compute free cash flow
Gutierrez Company reported net income of $225,000 for 2020. Gutierrez also reported depreciation expense of $45,000 and a loss of $5,000 on the disposal of equipment. The comparative balance sheet shows a decrease in accounts receivable of $15,000 for the year, a $17,000 increase in accounts payable, and a $4,0000 decrease in prepaid expenses.
Instructions
Prepare the operating activities section for the statement of cash flows for 2020. Use the indirect method..
The current sections of Scoggin Inc.'s balance sheets at December 31, 2019 and 2020 are presented here. Scoggin's net income for 2019 was $153,000. Depreciation expense was $24,000.
Instructions
The three accounts shown below appear in the general ledger of Herrick Corp. during 2020.
Instructions
Rojas Corporation's comparative balance sheets are presented below.
Comparative Balance Sheets
December 31
- Net income was $22,630. Dividends declared and paid were $19,500.
- No noncash investing and financing activities occurred during 2020.
- The land was sold for cash of $4,900.
Instructions
- Prepare a statement of cash flows for 2020 using the indirect method
- Compute free cash flow
Here are comparative balance sheets for Velo Company.
Comparative Balance Sheets
December 31
- Net income for 2020 was $93,000
- Cash dividends of $35,000 were declared and paid.
- Bonds payable amounting to $50,000 were redeemed for cash $50,000
- common stock was issued for $42,000 cash.
- No equipment was sold during 2020, but land was sold at cost
Instructions
Instructions
Comparative balance sheets for International Company are presented below
Comparative Balance Sheets
December 31
- Net income for 2020 was $135,000.
- Cash dividends of $70,000 were declared and paid.
- Bonds payable amounting to $50,000 were redeemed for cash $50,000
- Common stock was issued for $50,000 cash.
- Depreciation expense was $24,000.
- Sales revenue for the year was $978,000.
- Land was sold at cost, and equipment was purchased for cash.
Instructions
The following information is taken from the 2020 general ledger of Swisher Company
Instructions
In each case, compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct method.
Cushenberry Corporation had the following transactions.
- Sold land (cost $12,000) for $15,000
- Issued common stock at par for $20,000
- Recorded depreciation on buildings for $17,000.
- Paid salaries of $9,000.
- Issued 1,000 shares of $1 par value common stock for equipment worth $8,000
- Sold equipment (cost $10,000, accumulated depreciation $7,000) for $1,200
Instructions
For each transaction above, (a) prepare the journal entry, and (b) indicate how it would affect the statement of cash flows using the indirect method.