The net changes in the balance sheet accounts of Eusey, Inc. for the year 2018 a

Question

The net changes in the balance sheet accounts of Eusey, Inc. for the year 2018 are shown below:

Prepare a statement of cash flows (indirect method). Ignore tax effects. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Eusey, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2018
Increase (Decrease) in Cash

Account Debit Credit Cash $   85,800 Accounts receivable $   38,600 Allowance for doubtful accounts 10,900 Inventory 197,200 Prepaid expenses 19,500 Long-term investments 144,700 Land 381,000 Buildings 649,500 Machinery 100,000 Equipment 28,100 Accumulated depreciation:     Buildings 25,100     Machinery 20,800     Equipment 12,700 Accounts payable 191,000 Accrued liabilities 72,500 Dividends payable 128,000 Premium on bonds 36,000 Bonds payable 900,000 Preferred stock ($50 par) 60,000 Common stock ($510 par) 156,000 Additional paid-in capital—common 223,200 Retained earnings 87,200    $1,783,900 $1,783,900

Explanation / Answer

Eusey Inc., Statement of Cash Flows For the Year Ended December 31, 2018 Increase/Decrease in Cash Cash Flow From Operating Activities:         Net Income 140,000 Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation expense - Buildings 155,100 25,100+130,000       Depreciation expense - Machinery 60,800 20,800+40,000       Depreciation expense- Equipment 15,300 (12,700)+28,000       Gain on sale of land and building 50,000 400,000-350,000       Loss on sale of long-term investments 4,700 144,700-140,000       Decrease in Accounts Receivable (Net) 49,500       Increase in Inventory (197,200)      Increase in Prepaid expenses (19,500)     Decrease in Accounts Payable (191,000)     Increase in Accrued Liabilities 72,500    Loss on Condemnation of land 133,500 133,700 Net Cash Provided By Operating Activities 273,700 Cash Flow From Investing Activities Sale of Long-term Activities 140,000 Given Proceeds from Condemnation of land 108,000 Given Purchase of land (642,500) 381,000+241500+20,000 Sale of Building and Land 400,000 Given Purchase of Building (1,109,500) 649,500+460,000 Purchase of Machinery (140,000) Given Net Cash Used by Investing Activities (1,244,000) Cash Flow from Financing Activities Sale of Bonds 936,000 900,000+36,000 Retirement of preferred stock (80,000) Given Sale of Common Stock 300,000 12,000*25 Net Cash Provided By Financing Activities 1,156,000 Net Increase in Cash 185,700

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.