50.1K

Verified Solution

Link Copied!

The accounting records of Guci Corp. show the following data for the current year.

Balance Sheet, December $31$ Prior Year Current Year Difference

Cash $$371$ $$241$ $$(130)$

Accounts receivable $1,110740(370)$

Merchandise inventory $3701,110740$

Equipment, net $6,6608,1401,480$

Total assets $$8,511$ $$10,231$ $$1,720$

Accounts payable $$1,018$ $$888$ $$(130)$

Salaries payable $18593(92)$

Bonds payable $2,2202,590370$

Common stock $($no$-$par$)4,0704,440370$

Retained earnings $1,0182,2201,202$

Total liabilities and stockholders' equity $$8,511$ $$10,231$ $$1,720$

Income Statement

For the Current Year Ended December $31$

Revenues $$11,100$

Cost of goods sold $6,290$

Depreciation $1,480$

Other expenses $1,425$

Net income $$1,905$

Additional information:

$1.$ Equipment was sold for its book value of $$1,480.$

$2.$ Equipment purchased during the year was $$4,440.$

$3.$ Cash dividends declared and paid were $$703.$

Prepare the statement of cash flows for the current year ended December $31,$ using the indirect method to present cash flows from operating activities.

$$Note: Include a negative sign $(-)$ for any amount that would be subtracted in the statement of cash flows.

Statement of Cash Flows

For the Current Year Ended December $31$

Cash flows from operating activities

Answer & Explanation Solved by verified expert

See Answer