Bonita Industries reported the following information for2017.Bonita IndustriesComparative Balance SheetsDecember 31Assets...Bonita Industries reported the...

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Accounting

Bonita Industries reported the following information for2017.
Bonita Industries
Comparative Balance Sheets
December 31
Assets 2017 2016
Change
Increase/Decrease
Cash $65,990 $36,180 $29,810 Increase
Accounts receivable 62,110 22,220 39,890 Increase
Inventory 43,610 –0– 43,610 Increase
Prepaid expenses 5,960 3,980 1,980 Increase
Land 54,550 70,570 16,020 Decrease
Buildings 198,140 198,140 –0–
Accumulated depreciation—buildings (21,120 ) (14,080 ) 7,040 Increase
Equipment 182,420 68,470 113,950 Increase
Accumulated depreciation—equipment (28,360 ) (9,970 ) 18,390 Increase
Totals $563,300 $375,510
Liabilities and Stockholders’ Equity
Accounts payable $43,320 $40,140 $3,180 Increase
Accrued expenses payable 0 10,030 10,030 Decrease
Bonds payable 99,680 149,230 49,550 Decrease
Common stock ($1 par) 229,490 60,120 169,370 Increase
Retained earnings 190,810 115,990 74,820 Increase
Totals $563,300 $375,510
Bonita Industries
Income Statement
For the Year Ended December 31, 2017
Sales revenue $946,400
Cost of goods sold $476,940
Operating expenses 230,920
Interest expense 12,090
Loss on disposal of equipment 2,010 721,960
Income before income taxes 224,440
Income tax expense 64,840
Net income $159,600
Additional information:
1. Operating expenses include depreciation expense of$39,740.
2. Land was sold at its book value for cash.
3. Cash dividends of $84,780 were declared and paid in 2017.
4. Equipment with a cost of $164,470 was purchased for cash.Equipment with a cost of $50,520 and a book value of $36,210 wassold for $34,200 cash.
5. Bonds of $49,550 were redeemed at their face value forcash.
6. Common stock ($1 par) of $169,370 was issued for cash.

Use this information to prepare a statement of cash flows using theindirect method.

Answer & Explanation Solved by verified expert

3.8 Ratings (376 Votes)

Cash Flow Statement:-

Cash Flow from Operating Activities :-
Net Income	159600
(+) Depreciation	39740
(+) Loss on Disposal of Equipment	2010
(-) Increase A/c Receivable	39890
(-) Increase Inventory	43610
(-) Increase Prepaid Exp	1980
(+) Increase A/c Payable	3180
(-)Decrease Accrued Exp	10030
Cash Flow from Operating Activities (A)		109020

Cash Flow from Investing Activities :-
Sold Land	16020
(-) Purchase Equipment	164470
(+) Sold Equipment	34200
Cash Flow from Investing Activities (B)		(114250)

Cash Flow from Financing Activities :-
(-) Cash Dividend	84780
(-) Redeem Bonds	49550
(+) Issue Common Stock	169370
Cash Flow from Financing Activities (C)		35040
Total Cash Flow (A+B+C)		29810
(+) Beginning Cash Balance		36810
Ending Cash Balance		65990

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Transcribed Image Text

In: AccountingBonita Industries reported the following information for2017.Bonita IndustriesComparative Balance SheetsDecember 31Assets...Bonita Industries reported the following information for2017.Bonita IndustriesComparative Balance SheetsDecember 31Assets20172016ChangeIncrease/DecreaseCash$65,990$36,180$29,810IncreaseAccounts receivable62,11022,22039,890IncreaseInventory43,610–0–43,610IncreasePrepaid expenses5,9603,9801,980IncreaseLand54,55070,57016,020DecreaseBuildings198,140198,140–0–Accumulated depreciation—buildings(21,120)(14,080)7,040IncreaseEquipment182,42068,470113,950IncreaseAccumulated depreciation—equipment(28,360)(9,970)18,390Increase Totals$563,300$375,510Liabilities and Stockholders’ EquityAccounts payable$43,320$40,140$3,180IncreaseAccrued expenses payable010,03010,030DecreaseBonds payable99,680149,23049,550DecreaseCommon stock ($1 par)229,49060,120169,370IncreaseRetained earnings190,810115,99074,820Increase Totals$563,300$375,510Bonita IndustriesIncome StatementFor the Year Ended December 31, 2017Sales revenue$946,400Cost of goods sold$476,940Operating expenses230,920Interest expense12,090Loss on disposal of equipment2,010721,960Income before income taxes224,440Income tax expense64,840Net income$159,600Additional information:1.Operating expenses include depreciation expense of$39,740.2.Land was sold at its book value for cash.3.Cash dividends of $84,780 were declared and paid in 2017.4.Equipment with a cost of $164,470 was purchased for cash.Equipment with a cost of $50,520 and a book value of $36,210 wassold for $34,200 cash.5.Bonds of $49,550 were redeemed at their face value forcash.6.Common stock ($1 par) of $169,370 was issued for cash.Use this information to prepare a statement of cash flows using theindirect method.

Bonita Industries Comparative Balance Sheets December 31
Assets	2017		2016		Change Increase/Decrease
Cash	$65,990		$36,180		$29,810	Increase
Accounts receivable	62,110		22,220		39,890	Increase
Inventory	43,610		–0–		43,610	Increase
Prepaid expenses	5,960		3,980		1,980	Increase
Land	54,550		70,570		16,020	Decrease
Buildings	198,140		198,140		–0–
Accumulated depreciation—buildings	(21,120	)	(14,080	)	7,040	Increase
Equipment	182,420		68,470		113,950	Increase
Accumulated depreciation—equipment	(28,360	)	(9,970	)	18,390	Increase
Totals	$563,300		$375,510
Liabilities and Stockholders’ Equity
Accounts payable	$43,320		$40,140		$3,180	Increase
Accrued expenses payable	0		10,030		10,030	Decrease
Bonds payable	99,680		149,230		49,550	Decrease
Common stock ($1 par)	229,490		60,120		169,370	Increase
Retained earnings	190,810		115,990		74,820	Increase
Totals	$563,300		$375,510

Bonita Industries Income Statement For the Year Ended December 31, 2017
Sales revenue		$946,400
Cost of goods sold	$476,940
Operating expenses	230,920
Interest expense	12,090
Loss on disposal of equipment	2,010	721,960
Income before income taxes		224,440
Income tax expense		64,840
Net income		$159,600

Additional information:
1.		Operating expenses include depreciation expense of$39,740.
2.		Land was sold at its book value for cash.
3.		Cash dividends of $84,780 were declared and paid in 2017.
4.		Equipment with a cost of $164,470 was purchased for cash.Equipment with a cost of $50,520 and a book value of $36,210 wassold for $34,200 cash.
5.		Bonds of $49,550 were redeemed at their face value forcash.
6.		Common stock ($1 par) of $169,370 was issued for cash.