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QUESTION 52 The XYZ Corporation reported the following balance sheet data for 2018...

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Accounting

QUESTION 52

  1. The XYZ Corporation reported the following balance sheet data for 2018 and 2017:

    2018 2017
    Cash $60,375 $22,955
    Available-for-sale debt securities
    (not cash equivalents) 15,500 85,000
    Accounts receivable 91,000 68,250
    Inventory 165,000 145,000
    Prepaid insurance 1,500 2,000
    Land, buildings, and equipment 1,260,000 1,125,000
    Accumulated depreciation (610,000) (572,000)
    Total assets $983,375 $876,205
    Accounts payable $70,340 $148,670
    Salaries payable 20,000 24,500
    Notes payable (current) 25,000 75,000
    Bonds payable 200,000 0
    Common stock 300,000 300,000
    Retained earnings 368,035 328,035
    Total liabilities and shareholders' equity $983,375 $876,205

    Additional information for 2018: (1.) Sold available-for-sale debt securities costing $69,500 for $74,000. (2.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. (3.) Issued 6% bonds payable at face value, $200,000. (4.) Purchased new equipment for $155,000 cash. (5.) Paid cash dividends of $20,000. (6.) Net income was $50,000. Required: Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities. USE Worksheet Provide in class.

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