Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. c/f problem presented are the comparative december

C/F Problem Presented are the comparative December 31 financial statements for Medinet, Inc. (in $...

60.1K

Verified Solution

Question

Accounting

image
image
C/F Problem Presented are the comparative December 31 financial statements for Medinet, Inc. (in $ Millions). Prepare a statement of cash flows for December 31, Year 2 using the indirect method. Medinet Industries, Inc Balance Sheets At December 31, Year 2 and Year 1 Year 2 Cash $96,719 Accounts Receivable 100,000 Inventory 206,250 Prepaid Insurance 1,875 Land, Buildings, and Equipment 1,562,500 Accumulated Depreciation (762,500) Investments 19,375 Total Assets $1,224,219 Year 1 $28,69 85,31 181,25 2,50 1,406,25 (715,000 106,25 $1,095,25 Accounts Payable Salaries Payable Notes Payable Bonds Payable Common Stock Retained Earnings $185,83 30,62 93,75 $95,425 25,000 31,250 250,000 375,000 447,544 $1.224.219 375,00 410,04 $1.095,25 C/F Problem - continued Additional information for Year 2 1) Sold available for sale securities costing $86,875 for $92,500. 2) Equipment costing $25,000 with a book value of $6,250 was sold for $7,500 3) Issued 8% bonds at face value for $250,000. 4) Purchased new equipment for $181,250 and paid cash. 5) Paid cash dividends of $25,000. 6) Net income was $62,500

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students