PR 16-2B Statement of cash flows—indirect method
The comparative balance sheet of Beets Industries, Inc. at December 31, 2013 and 2012, is as follows:
| Dec. 31, 2013 | Dec. 31, 2012 | |
| Assets | ||
| Cash | $ 379,920 | $ 309,360 |
| Accounts receivable (net) | 570,240 | 507,600 |
| Inventories | 761,040 | 876,480 |
| Prepaid expenses | 27,120 | 21,600 |
| Land | 259,200 | 259,200 |
| Buildings | 1,468,800 | 972,000 |
| Accumulated depreciation—buildings | (399,600) | (355,320) |
| Machinery and equipment | 669,600 | 669,600 |
| Accumulated depreciation—machinery and equipment | (183,600) | (164,160) |
| Patents | 91,680 | 103,680 |
| $3,644,400 | $3,200,040 | |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable (merchandise creditors) | $ 717,840 | $ 794,640 |
| Dividends payable | 28,080 | 21,600 |
| Salaries payable | 67,680 | 74,640 |
| Mortgage note payable, due 2017 | 192,000 | 0 |
| Bonds payable | 0 | 336,000 |
| Common stock, $2 par | 99,200 | 43,200 |
| Paid-in capital in excess of par—common stock | 388,000 | 108,000 |
| Retained earnings | 2,151,600 | 1,821,960 |
| $3,644,400 | $3,200,040 |
An examination of the income statement and the accounting records revealed the following additional information applicable to 2013:
a. Net income, $441,960.
b. Depreciation expense reported on the income statement: buildings, $44,280; machinery and equipment, $19,440.
c. Patent amortization reported on the income statement, $12,000.
d. A building was constructed for $496,800.
e. A mortgage note for $192,000 was issued for cash.
f. 28,000 shares of common stock were issued at $12 in exchange for the bonds payable.
g. Cash dividends declared, $112,320.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Economic Debate- Progressive Income Tax For this Economic Debate, we are going to discuss the…
TOPIC: Going Global Discussion Thread 1 (initial post due Wednesday for full credit) Please note:…
Assignment Topic This week will culminate in the creation of a narrated PowerPoint to create…
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted…
you need to post your 2-page information flier to share with your Final Project Group.…
discussion: Discuss the methods used at your company to measure and ensure quality products and…