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Year-End Balance Sheet and Statement of Cash Flows Indirect Method The balance sheet of Poodle Company

Year-End Balance Sheet and Statement of Cash Flows—Indirect Method

The balance sheet of Poodle Company at the end of 2007 is presented here, along with certain

other information for 2008:

Other information is as follows:

a. Net income for 2008 was $50,000.

b. Included in operating expenses was $25,000 in depreciation.

c. Cash dividends of $40,000 were declared and paid.

d. An additional $50,000 of common stock was issued for cash.

e. Bonds payable of $100,000 were purchased for cash and retired at no gain or loss.

f. Cash purchases of plant and equipment during the year were $60,000.

g. An additional $200,000 of land was acquired in exchange for a long-term note payable.

h. During the year, sales exceeded cash collections on account by $15,000. All sales are on account.

i. The amount of current liabilities decreased by $20,000 during the year.

May 03 2020 View more View Less

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