Question

Nov 21, 2019 - Cash Flows for a company that has the following data: sheets for Vespa December 31 Accumulated depreciate Total Liabilities and Stockholders' Equity Bonds payable Common stock (51 par) Retained earning Total $597.000 Additional information 1. Net income for 2017 was $93,000 2. Cash dividends of $35,000 were declared and paid. 3. Bonds payable amounting to $50,000 were redeemed for cash $50,000. 4. Common stock was issued for $42,000 cash. 5. No equipment was sold during 2017, but land was sold at cost Instructions Prepare a statement of cash flows for 2017 using the indirect method. E13-9 Rodriquez Corporation's comparative balance sheets are presented below. Preparatement of cash flows and compute free cash flow (LO 2,3). AP 2016 $ 17,700 22,300 16.000 70,000 (10,000) RODRIGUEZ CORPORATION Comparative Balance Sheets December 31 2017 Cash $ 15,200 Accounts receivable 25.200 Investments 20,000 Equipment 60,000 Accumulated depreciation equipment (14,000) Total $106,400 Accounts payable $ 14,600 Bonds payable 10,000 Common stock 50,000 Retained earnings 31,800 Total $106,400 $116,000 $ 11.100 30,000 45.000 29.900 $116,000 Additional information: 1. Net income was $18,300. Dividends declared and paid were $16,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300. 3. No noncash investing and financing activities occurred during 2017. Instructions (a) Prepare a statement of cash flows for 2017 using the indirect method. frecchio

Answer 1

Answer to EX 13-8:

93000 34000 -9000 19000 -8000 129000 VELO COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from Operating Activities Net Income Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in accounts payable Net cash provided by Operating Activities Cash flows from Investing Activities Sale of land Purchase of equipment Net cash used for Investing activities Cash flows from Financing Activities Cash dividend paid Redemption of bonds Issuance of common stock Net Cash used for Financing Activities Net increase in cash Beginning cash balance Ending cash balance 25000 -70000 -45000 -35000 -50000 42000 -43000 41000 22000 63000