90.2K

Verified Solution

Link Copied!

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Tim Company. Additional information from Tim companys accounting records is provided also. If necessary, record journal entries.

!!!!!!!This problem requires that you complete the full statement of cash flows, including any required non-cash disclosures, using the indirect method only.

Additional information from the accounting records:

On November 12, 1,000 shares of common stock were repurchased as treasury stock.

The common stock of Thomas Corporation was purchased for $10,000 as a long-term investment.

Cash dividends of were paid to shareholders.

New equipment was purchased for $30,000 cash.

On January 1, 2024, bonds were sold at their $50,000 face value.

A building that originally cost $80,000, and which was three-fourths depreciated, was sold for $14,000.

Property was acquired by issuing a 13%, seven-year, $60,000 note payable to the seller.

On January 19, Tim issued a 5% stock dividend (2,000 shares). The market price of the $10 par value common stock was $14 per share at that time.

TIM COMPANY Comparative Balance Sheets December 31, 2024 and 2023 (\$ in thousands) 2024 TIMCOMPANY Statement of Cash Flows 2023 Assets Cash Accounts receivable $62 $40 Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation 8 6 110 30 140 450 50 100 \begin{tabular}{r|r} \hline$836 & $738 \\ \hline \hline \end{tabular} Liabilities Accounts payable $26 Salaries payable Interest payable Income tax payable Notes payable Bonds payable 190 Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings Less: Treasury stock 6 4 100 20 80 500 ** \$26 4 10 60 $40 8 4 14 16 60 0 140 \begin{tabular}{|c|c|} \hline-4 & -6 \\ \hline 0 & 0 \\ \hline 420 & 400 \\ \hline 48 & 40 \\ \hline 90 & 94 \\ \hline-20 & 0 \\ \hline$836 & $738 \\ \hline \end{tabular} Martin COMPANY Income statement For the Year Ended (\$ in thousands) Revenues Sales revenue $400 Dividen d revenue Expenses Cost of goods sold Salarie s 50 expense Depreci ation expense Bad debt 2 expense Interes t expense Loss on sale of buildin g Income tax expense Net income 6 ome 240 $406 $406 6 $50 \begin{tabular}{|l|l|l|} \hline \hline & \\ \hline & & \\ \hline & \\ \hline & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer