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Problem 12-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Prepaid rent $68,940 32,100 156,647 $39,800 23,540 172,310 Equipment 2,490 252,140 4,980 285,080 Accumulated depreciation (140,310) (233,210) Land 194,490 83,690 Total assets $566,497 $376,190 Liabilities Accounts payable (inventory) $66,991 75,990 Salaries payable 25,235 21,630 Stockholders' equity Common stock, $50 par value 253,000 201,000 Retained earnings 221,271 77,570 Total liabilities and equity $566,497 $376,190 Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit $1,499,000 (796,669) 702,331 (23,040) Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $110,800. 2. Purchased new equipment for $102,000. (22,650) (253,360) (259,580) $143,701 3. Sold old equipment that cost $134,940 with accumulated depreciation of $115,940 for $19,000 cash. 4. Issued common stock for $52,000. Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.) RACEWAY CORPORATION Statement of Cash Flows Cash flows from operating activities: For the Year Ended December 31, Year 2 Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance $ 0 0 0 0 0

Problem 12-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Prepaid rent $68,940 32,100 156,647 $39,800 23,540 172,310 Equipment 2,490 252,140 4,980 285,080 Accumulated depreciation (140,310) (233,210) Land 194,490 83,690 Total assets $566,497 $376,190 Liabilities Accounts payable (inventory) $66,991 75,990 Salaries payable 25,235 21,630 Stockholders' equity Common stock, $50 par value 253,000 201,000 Retained earnings 221,271 77,570 Total liabilities and equity $566,497 $376,190 Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit $1,499,000 (796,669) 702,331 (23,040) Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $110,800. 2. Purchased new equipment for $102,000. (22,650) (253,360) (259,580) $143,701 3. Sold old equipment that cost $134,940 with accumulated depreciation of $115,940 for $19,000 cash. 4. Issued common stock for $52,000. Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.) RACEWAY CORPORATION Statement of Cash Flows Cash flows from operating activities: For the Year Ended December 31, Year 2 Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance $ 0 0 0 0 0

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 16.21EX
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Problem 12-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Prepaid rent $68,940 32,100 156,647 $39,800 23,540 172,310 Equipment 2,490 252,140 4,980 285,080 Accumulated depreciation (140,310) (233,210) Land 194,490 83,690 Total assets $566,497 $376,190 Liabilities Accounts payable (inventory) $66,991 75,990 Salaries payable 25,235 21,630 Stockholders' equity Common stock, $50 par value 253,000 201,000 Retained earnings 221,271 77,570 Total liabilities and equity $566,497 $376,190 Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit $1,499,000 (796,669) 702,331 (23,040) Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $110,800. 2. Purchased new equipment for $102,000. (22,650) (253,360) (259,580) $143,701 3. Sold old equipment that cost $134,940 with accumulated depreciation of $115,940 for $19,000 cash. 4. Issued common stock for $52,000.
Transcribed Image Text:Problem 12-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method LO 12-1, 12-3, 12-4 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Prepaid rent $68,940 32,100 156,647 $39,800 23,540 172,310 Equipment 2,490 252,140 4,980 285,080 Accumulated depreciation (140,310) (233,210) Land 194,490 83,690 Total assets $566,497 $376,190 Liabilities Accounts payable (inventory) $66,991 75,990 Salaries payable 25,235 21,630 Stockholders' equity Common stock, $50 par value 253,000 201,000 Retained earnings 221,271 77,570 Total liabilities and equity $566,497 $376,190 Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit $1,499,000 (796,669) 702,331 (23,040) Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income Other Information 1. Purchased land for $110,800. 2. Purchased new equipment for $102,000. (22,650) (253,360) (259,580) $143,701 3. Sold old equipment that cost $134,940 with accumulated depreciation of $115,940 for $19,000 cash. 4. Issued common stock for $52,000.
Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.) RACEWAY CORPORATION Statement of Cash Flows Cash flows from operating activities: For the Year Ended December 31, Year 2 Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance $ 0 0 0 0 0
Transcribed Image Text:Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.) RACEWAY CORPORATION Statement of Cash Flows Cash flows from operating activities: For the Year Ended December 31, Year 2 Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Ending cash balance $ 0 0 0 0 0
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