Question

Juarez Company Comparative Balance Sheet December 31 Additional information: (a) In 2018, the company declared and paid a $32,000 cash dividend (b) Bonds were issued at face value for $90,000 in cash (c) Equipment costing $180,000 was purchased for cash (d) Equipment costing $20,000 was sold for cash when the book value of the equipment was $18.000 (e) Common stock of S100,000 was issued to acquire and Assets 2018 2017 Prepare a statement of Cash Flows Accounts receivable Inventory Prepand expenses Land Equpment, net Total $191.000 12.000 120.000 6.000 SUDA 14 $063,000 $159,000 15.000 160.000 S000 80,000 -0- $422,000 Chan Increase Decora S2000 Increase 3.000 Decrease 30.000 Decrease 2000 Decrease 100.000 Increase 144,000 Increase S00,000 20.000 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Income taxes payable Bonds payable Common stock Retained a ngs Total 5.2009 150,000 12,000 90.000 400.000 90.000 5663.000 $ 8.000 Decrease 5.000 Decrease 12,000 lucrease 90.000 Increase 100.000 Increase 52.000 Increase 300.000 42,000 $422.000 Juaret Company Income Statement For the Year ended December 31, 2018 5975.000 Revenues from sales Cost of goods sold Operating expenses (excluding depreciation Depreciation expense Loss on sale of stare equatent Income before income taxes Income tax expense Net Income 5660,000 18.00 18,000 1.000 855000 36,000 S.S.000 (Continued) 21 2573 word Type here to search

Answer 1

Answer is given below

Cash flow statement is given below as per indirect method

Juarez Company Cash Flow Statement under Indirect method For the year ended December 31, 2018 Cash flows from Operating Activities Amount Net Income $84,000 Add: Adjustments to reconcile net income to Depreciation $18,000 Loss on sale of equipment $1,000 Changes in Working Capital Decrease in Accounts Receivable $3,000 Decrease in Inventory $30,000 Decrease in Prepaid expenses $2,000 Decrease in Account payable -$8,000 Decrease in Accrued expenses payable -$5,000 Increase in Income tax payable $12,000 Net Cash provided by Operating Activities $137,000 Cash flows from Investing Activities Purchase of Land -$100,000 Purchase of Equipment -$180,000 Sale of Equipment $17,000 Net Cash used by Investing Activities -$263,000 Cash flows from Financing Activities Issue of Bonds $90,000 Issue of Common Stock $100,000 Dividend paid -$32,000 Net Cash provided by Financing Activities $158,000 Net Cash inflow/(outflow) $32,000 Opening balance of cash $159,000 Closing balance of cash $191,000 Working note Book value of Equipment sold Loss on sale Net cash received $18,000 $1,000 $17,000