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Home / Questions / PROBLEM 14–12 Missing Data Statement of Cash Flows LO1 LO2 Estes Company listed the net c...

PROBLEM 14–12 Missing Data Statement of Cash Flows LO1 LO2 Estes Company listed the net changes in its balance sheet accounts for the past year as follows

PROBLEM 14–12 Missing Data; Statement of Cash Flows [LO1, LO2]

Estes Company listed the net changes in its balance sheet accounts for the past year as follows:

 

 

Debits > Credits by:

 

Credits > Debits by:

Cash . . . . . . . . . . . . . . . . . . . . . . . . .

$  51,000

 

 

Accounts receivable . . . . . . . . . . . . .

170,000

 

 

Inventory . . . . . . . . . . . . . . . . . . . . . .

 

 

$  63,000

Prepaid expenses . . . . . . . . . . . . . . .

4,000

 

 

Long-term loans to subsidiaries . . . .

 

 

80,000

Long-term investments . . . . . . . . . . .

90,000

 

 

Plant and equipment . . . . . . . . . . . . .

340,000

 

 

Accumulated depreciation . . . . . . . .

 

 

65,000

Accounts payable . . . . . . . . . . . . . . .

 

 

48,000

Accrued liabilities . . . . . . . . . . . . . . .

5,000

 

 

Income taxes payable . . . . . . . . . . . .

 

 

9,000

Bonds payable . . . . . . . . . . . . . . . . .

 

 

200,000

Common stock . . . . . . . . . . . . . . . . .

 

 

120,000

Retained earnings . . . . . . . . . . . . . .

 

 

75,000

 

$660,000

 

$660,000

 

The following additional information is available about last year’s activities:

a.       Net income for the year was $ ? .

b.       The company sold equipment during the year for $35,000. The equipment originally cost the company $160,000, and it had $145,000 in accumulated depreciation at the time of sale.

c.       The company declared and paid $10,000 in cash dividends during the year.

d.       The beginning and ending balances in the Plant and Equipment and Accumulated Deprecia- tion accounts are given below:

 

 

e.       The balance in the Cash account at the beginning of the year was $109,000; the balance at the end of the year was $ ? .

f.       If data are not given explaining the change in an account, make the most reasonable assump- tion as to the cause of the change.

Required:

Using the indirect method, prepare a statement of cash flows for the year.

Jun 28 2020 View more View Less

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