90.2K

Verified Solution

Link Copied!

Please answer question #11, SHOWING ALL WORK ACCORDINGLY ON ALL PARTS. Thank you!

Condensed financial data of Ivanhoe Company appear below: IVANHOE COMPANY Comparative Balance Sheet December 31 Assets 2022 2021 Cash $65.700 $53,000 Accounts receivable 87.000 52,000 Inventories 122.000 130,000 Prepaid expenses 16,900 29,000 68,000 Investments 83.000 Plant assets 317,000 258,000 (64,000 Accumulated depreciation (75.000) Total $616,600 $526,000 Liabilities and Stockholder's Equity Accounts payable $92.000 $83.000 Accrued expenses payable 20,700 24,300 Bonds payable 136.000 152.000 Common stock 249.500 172.500 Retained earnings 118,400 94,200 Total $616.600 S526,000 IVANHOE COMPANY Income Statement For the Year Ended December 31, 2022 Sales $486,000 Less: Cost of goods sold $296,000 Operating expenses (exculding depreciation) 66,500 Depreciation expense 17.900 Income taxes 16,200 Interest expense 13,100 Loss on disposal of plant assets 8,300 418.000 Net income $68,000 1 1 2 Additional Information: New plant assets costing $89.000 were purchased for cash in 2022 Old plant assets costing $28,000 were sold for 55.000 cash when book value was $14.000. Bonds with a face value of 524.000 were converted into $24,000 of common stock A cash dividend of $26,000 was declared and paid during the year. 5. Accounts payable pertain to merchandise purchases. 3 4. Prepare a statement of cash flows for the year using the direct method. (Show amounts that decrease cash flow with either a signes 15,000 or in parenthesis es. (15,000).) IVANHOE COMPANY Statement of Cash Flows

Answer & Explanation Solved by verified expert

See Answer