Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

MICHAEL JACKSON GREATEST STAR EVER COMPANY Comparative Balance Sheets For period

ID: 2450759 • Letter: M

Question

MICHAEL JACKSON GREATEST STAR EVER COMPANY Comparative Balance Sheets For period Ending Dec. 31 Assets 2008 2007 Cash            77,380            23,320 Accounts receivable            90,100            80,560 Inventories          180,200          200,340 Land            79,500          106,000 Equipment          275,600          212,000 Accumulated depreciation          (69,960)          (33,920)      Total          632,820          588,300         Liabilities and Stockholders' Equity     Accounts payable            41,340            49,820 Bonds payable          159,000          212,000 Common stock ($1 par)          228,960          184,440 Retained earnings          203,520          142,040      Total          632,820          588,300 Additional information: Net income for 2008 was $109,180. Cash dividends of $47,700 were declared and paid. Bonds payable amounting to $53,000 were redeemed for cash $53,000. Common stock was issued for $44,520 cash. No equipment was sold during 2008. Instructions: Prepare a statement of cash flows for 2008 using the indirect method. (19 pts) MICHAEL JACKSON GREATEST STAR EVER COMPANY Comparative Balance Sheets For period Ending Dec. 31 Assets 2008 2007 Cash            77,380            23,320 Accounts receivable            90,100            80,560 Inventories          180,200          200,340 Land            79,500          106,000 Equipment          275,600          212,000 Accumulated depreciation          (69,960)          (33,920)      Total          632,820          588,300         Liabilities and Stockholders' Equity     Accounts payable            41,340            49,820 Bonds payable          159,000          212,000 Common stock ($1 par)          228,960          184,440 Retained earnings          203,520          142,040      Total          632,820          588,300 Additional information: Net income for 2008 was $109,180. Cash dividends of $47,700 were declared and paid. Bonds payable amounting to $53,000 were redeemed for cash $53,000. Common stock was issued for $44,520 cash. No equipment was sold during 2008. Instructions: Prepare a statement of cash flows for 2008 using the indirect method. (19 pts)

Explanation / Answer

MICHAEL JACKSON GREATEST STAR EVER COMPANY Comparative Balance Sheets For period