Problem 23-6 Comparative balance sheet accounts of Sheridan Inc. are presented b
ID: 2530302 • Letter: P
Question
Problem 23-6
Comparative balance sheet accounts of Sheridan Inc. are presented below.
SHERIDAN INC.
COMPARATIVE BALANCE SHEET ACCOUNTS
AS OF DECEMBER 31, 2017 AND 2016
December 31
2017
2016
$41,600
$33,600
70,400
60,600
30,000
24,200
22,100
38,200
29,900
18,800
67,800
56,900
7,500
7,500
$269,300
$239,800
$2,200
$1,500
5,700
2,200
13,700
9,100
35,000
25,000
3,300
2,600
20,800
31,300
150,000
125,000
38,600
43,100
$269,300
$239,800
Additional data (ignoring taxes):
Sheridan’s 2017 income statement follows (ignoring taxes).
$541,900
381,900
160,000
121,400
38,600
$3,800
(800
)
3,000
$41,600
(a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
(b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
SHERIDAN INC.
COMPARATIVE BALANCE SHEET ACCOUNTS
AS OF DECEMBER 31, 2017 AND 2016
December 31
Debit Accounts2017
2016
Cash$41,600
$33,600
Accounts Receivable70,400
60,600
Inventory30,000
24,200
Equity investments22,100
38,200
Machinery29,900
18,800
Buildings67,800
56,900
Land7,500
7,500
$269,300
$239,800
Credit Accounts Allowance for Doubtful Accounts$2,200
$1,500
Accumulated Depreciation—Machinery5,700
2,200
Accumulated Depreciation—Buildings13,700
9,100
Accounts Payable35,000
25,000
Accrued Payables3,300
2,600
Long-Term Notes Payable20,800
31,300
Common Stock, no-par150,000
125,000
Retained Earnings38,600
43,100
$269,300
$239,800
Explanation / Answer
Solution a:
Solution b:
Computation of cash received from customers Particulars Amount Beginning accounts receivables $60,600.00 Add: Sales $541,900.00 Less: Ending accounts receivables $70,400.00 Less: Bad Debts (5127-700) $4,427.00 Cash received from customers $527,673.00Related Questions
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