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    HARTMAN CORPORATION

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    A comparative balance sheet for Hartman Corporation is presented below:
    HARTMAN CORPORATION
    Comparative Balance Sheet
    2010 2009
    Assets
    Cash $ 46,000 $ 31,000
    Accounts receivable (net) 70,000 60,000
    Prepaid insurance 25,000 17,000
    Land 18,000 40,000
    Equipment 70,000 60,000
    Accumulated depreciation (20,000) (13,000)
    Total Assets $209,000 $195,000

    Liabilities and Stockholders' Equity
    Accounts payable $ 11,000 $ 6,000
    Bonds payable 27,000 19,000
    Common stock 140,000 115,000
    Retained earnings 31,000 55,000
    Total liabilities and stockholders' equity $209,000 $195,000

    Additional information:
    1. Net loss for 2010 is $10,000.
    2. Cash dividends of $14,000 were declared and paid in 2010.
    3. Land was sold for cash at a loss of $4,000. This was the only land transaction during the year.
    4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
    5. $22,000 of bonds were retired during the year at carrying (book) value.
    6. Equipment was acquired for common stock. The fair market value of the stock at the time of the exchange was $25,000.

    Instructions
    Prepare a statement of cash flows for the year ended 2010, using the indirect method.

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    A comparative balance sheet for Hartman Corporation is presented below:
    HARTMAN CORPORATION
    Comparative Balance Sheet
    2010 2009
    Assets
    Cash $ 46,000 $ 31,000
    Accounts receivable (net) 70,000 60,000
    Prepaid insurance 25,000 17,000
    Land 18,000 40,000
    Equipment 70,000 ...

    Solution Summary

    This solution is comprised of a detailed explanation to prepare a statement of cash flows for the year ended 2010, using the indirect method.

    $2.19

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