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Condensed comparative balance sheets of Posner Company at December 31, Years 1 and 2, appear as follows: Year 2 Year 1 Cash 000s 000'0$ Accounts receivable (net) 000 Inventories 000'00 Investments 000'0 Equipment 573,200 000'0 Accumulated depreciation-equipment (176,000) Total assets $629,700 $542,000 Accounts payable $62,500 $43,800 Bonds payable, due Year 2 00000 Common stock, $10 par Paid-in capital in excess of par 000 58,200 000'0 Retained earnings 162,200 Total liabilities and stockholders' equity $629,700 $542,000 The income statement for the current year is as follows: Sales $625,700 Show 9:30 PM a (中岁 11/1/2021 rch w直 0 Cost of merchandise sold 000'0 Gross profit Operating expenses: Depreciation expense Other operating expenses 000 000'6 Income from operations $191,700 Other revenue and expense: Gain on sale of investment 000'%$ Interest expense (000') (000) Income before income tax $189,700 Income tax expense 60,700 Net income 000'6 Additional data for the current year are as follows: • Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. • Bonds payable for $100,000 were retired by payment at their face amount. • 5,000 shares of common stock were issued at $13 for cash.. • Cash dividends declared and paid, $25,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Posner Company Statement of Cash Flows Show all 9:31 PM a 55°F (中ツ 11/1/2021 earch ■ # 五 0 144 asned ctri

Condensed comparative balance sheets of Posner Company at December 31, Years 1 and 2, appear as follows: Year 2 Year 1 Cash 000s 000'0$ Accounts receivable (net) 000 Inventories 000'00 Investments 000'0 Equipment 573,200 000'0 Accumulated depreciation-equipment (176,000) Total assets $629,700 $542,000 Accounts payable $62,500 $43,800 Bonds payable, due Year 2 00000 Common stock, $10 par Paid-in capital in excess of par 000 58,200 000'0 Retained earnings 162,200 Total liabilities and stockholders' equity $629,700 $542,000 The income statement for the current year is as follows: Sales $625,700 Show 9:30 PM a (中岁 11/1/2021 rch w直 0 Cost of merchandise sold 000'0 Gross profit Operating expenses: Depreciation expense Other operating expenses 000 000'6 Income from operations $191,700 Other revenue and expense: Gain on sale of investment 000'%$ Interest expense (000') (000) Income before income tax $189,700 Income tax expense 60,700 Net income 000'6 Additional data for the current year are as follows: • Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. • Bonds payable for $100,000 were retired by payment at their face amount. • 5,000 shares of common stock were issued at $13 for cash.. • Cash dividends declared and paid, $25,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Posner Company Statement of Cash Flows Show all 9:31 PM a 55°F (中ツ 11/1/2021 earch ■ # 五 0 144 asned ctri

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Condensed comparative balance sheets of Posner Company at December 31, Years 1 and 2, appear as follows: Year 2 Year 1 Cash 000s 000'0$ Accounts receivable (net) 000 Inventories 000'00 Investments 000'0 Equipment 573,200 000'0 Accumulated depreciation-equipment (176,000) Total assets $629,700 $542,000 Accounts payable $62,500 $43,800 Bonds payable, due Year 2 00000 Common stock, $10 par Paid-in capital in excess of par 000 58,200 000'0 Retained earnings 162,200 Total liabilities and stockholders' equity $629,700 $542,000 The income statement for the current year is as follows: Sales $625,700 Show 9:30 PM a (中岁 11/1/2021 rch w直 0
Transcribed Image Text:Condensed comparative balance sheets of Posner Company at December 31, Years 1 and 2, appear as follows: Year 2 Year 1 Cash 000s 000'0$ Accounts receivable (net) 000 Inventories 000'00 Investments 000'0 Equipment 573,200 000'0 Accumulated depreciation-equipment (176,000) Total assets $629,700 $542,000 Accounts payable $62,500 $43,800 Bonds payable, due Year 2 00000 Common stock, $10 par Paid-in capital in excess of par 000 58,200 000'0 Retained earnings 162,200 Total liabilities and stockholders' equity $629,700 $542,000 The income statement for the current year is as follows: Sales $625,700 Show 9:30 PM a (中岁 11/1/2021 rch w直 0
Cost of merchandise sold 000'0 Gross profit Operating expenses: Depreciation expense Other operating expenses 000 000'6 Income from operations $191,700 Other revenue and expense: Gain on sale of investment 000'%$ Interest expense (000') (000) Income before income tax $189,700 Income tax expense 60,700 Net income 000'6 Additional data for the current year are as follows: • Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. • Bonds payable for $100,000 were retired by payment at their face amount. • 5,000 shares of common stock were issued at $13 for cash.. • Cash dividends declared and paid, $25,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Posner Company Statement of Cash Flows Show all 9:31 PM a 55°F (中ツ 11/1/2021 earch ■ # 五 0 144 asned ctri
Transcribed Image Text:Cost of merchandise sold 000'0 Gross profit Operating expenses: Depreciation expense Other operating expenses 000 000'6 Income from operations $191,700 Other revenue and expense: Gain on sale of investment 000'%$ Interest expense (000') (000) Income before income tax $189,700 Income tax expense 60,700 Net income 000'6 Additional data for the current year are as follows: • Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new equipment was purchased for $183,200. • Bonds payable for $100,000 were retired by payment at their face amount. • 5,000 shares of common stock were issued at $13 for cash.. • Cash dividends declared and paid, $25,000. Prepare a statement of cash flows for the year ended December 31, Year 2, using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Posner Company Statement of Cash Flows Show all 9:31 PM a 55°F (中ツ 11/1/2021 earch ■ # 五 0 144 asned ctri
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