Explore BrainMass

Explore BrainMass

    Statement of Cash flows for Teller Co.

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    On the basis of the following data for Teller Co. for 2008 and the preceding year ended December 31, 2008, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000; was purchased for cash, and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

    Year 2007 2008
    Cash $78,000 $100,000
    Accounts Receivable (net) $85,000 $78,000
    Inventories $90,000 $101,500
    Equipment $370,000 $410,000
    Accumulated Depreciation ($158,000) ($150,000)
    Total $465,000 $539,500

    Accounts Payable $55,000 $58,500
    (Merchandise Creditors)
    Cash Dividends Payable $4,000 $5,000
    Common Stock, $10 Par $170,000 $170,000
    Paid-in Capital in Excess of $60,000 $62,000
    Par Common Stock
    Retained Earnings $176,000 $214,000
    Total $465,000 $539,500

    © BrainMass Inc. brainmass.com October 4, 2022, 12:07 am ad1c9bdddf
    https://brainmass.com/math/algebra/558370

    Solution Preview

    Statement of Cash Flow (Indirect Method)
    For the year Ended December 31, 2008

    Net Income $51,000
    Adjustments to reconcile net income to net cash provided
    Add: Depreciation $57,000
    Changes in other ...

    Solution Summary

    The solution gives detailed steps on completing a statement of cash flows for Teller Co.

    $2.49

    ADVERTISEMENT