Concept explainers
Statement of
The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows:
Dec 31, 20Y4 | Dec 31, 20Y3 | |
Assets | ||
Cash | $ 443,240 | $ 360,920 |
665,280 | 592,200 | |
Inventories | 887,880 | 1,022,560 |
Prepaid expenses | 31,640 | 25,200 |
Land | 302,400 | 302,400 |
Buildings | 1,713,600 | 1,134,000 |
Accumulated |
(466,200) | (414,540) |
Machinery and equipment | 781,200 | 781,200 |
Accumulated depreciation—machinery and equipment | (214,200) | (191,520) |
Patents | 106,960 | 112,000 |
Total assets | $4,251,800 | $3,724,420 |
Liabilities and |
||
Accounts payable | $ 837,480 | $ 927,080 |
Dividends payable | 32,760 | 25,200 |
Salaries payable | 78,960 | 87,080 |
Mortgage note payable, due in 10 years | 224,000 | 0 |
Bonds payable | 0 | 390,000 |
Common stock, $S par | 200,400 | 50,400 |
Paid-in capital: Excess of issue price over par—common stock | 366,000 | 126,000 |
2,512,200 | 2,118,660 | |
Total liabilities and stockholders' equity | $4,251,800 | $3,724,420 |
An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4:
a. Net income, $524,580.
b. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
c. Patent amortization reported on the income statement, $5,040.
d. A building was constructed for $579,600.
e. A mortgage note for $224,000 was issued for cash.
f. 30.000 shares of common stock were issued at $13 in exchange for the bonds payable.
g. Cash dividends declared, $131,040.
Instructions
Prepare a statement of cash flows, using the indirect method.
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Chapter 16 Solutions
Accounting
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