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Condensed financial data of sinjh Inc follow Sinjh Inc Comparative Balance Sheets December 31 Assets 2014 2013 Cash $100350 $ 48400 Accounts receivable 92800 33000 Inventory

Condensed financial data of sinjh Inc. follow.

 

 

Sinjh Inc.

 

 

Comparative Balance Sheets

 

December 31

 

 

Assets

2014 2013

 

Cash

$100,350 $ 48,400

 

Accounts receivable

92,800 33,000

 

Inventory

112,500 102,850

 

Prepaid expenses

29,300 26,000

 

Long-term investments

140,000 114,000

 

Plant assets

265,000 242,500

 

Accumulated depreciation

(47,000) (52,000)

 

Total

$692,950 $514,750

 

Liabilities and Stockholders' Equity

 

 

Accounts payable

$112,000 $ 67,300

 

Accrued expenses payable

16,500 17,000

 

Bonds payable

110,000 150,000

 

Common stock

220,000 175,000

 

Retained earnings

234,450 105,450

 

Total "

$692,950 $514,750

 

 

 

 

Sinjh Inc

 

 

 

 

Sales revenue

Gain on disposal of plant assets

$392,780

5,000

 

 

 

Less:

 

 

 

 

Cost of goods sold

135,460

 

 

 

Operating expenses, excluding

 

 

 

 

depreciation

12,410

 

 

 

Depreciation expense

45,000

 

 

 

Income tax expense

27,280

 

 

 

Interest expense

4,730 224,880

 

 

 

Net income

$172,900

Additional information:

1. New plant assets costing $80,000 were purchased for cash during the year.

2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $50,000 were sold for $12,500 cash.

3. Bonds payable matured and were paid off at face value for cash.

4. A cash dividend of $43,900 was declared and paid during the year,

Instructions

Prepare a statement of cash flows using the indirect method.

 

 

P13-10A Data for Sigh Inc. are presented in P13-9A. Further analysis reveals that accounts payable pertains to Merchandise Creditors.

Prepare a statement of cash flows using the direct method.

Jun 24 2020 View more View Less

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