Current Attempt in Progress The comparative balance sheets for the A1 Beauty Supply Corporation is presented below: A1 BEAUTY SUPPLY CORPORATION Comparative Balance Sheets Assets 2025 2024 Cash Accounts receivable (net) Prepaid insurance $37,000 $31,000 80,000 60,000 22,000 17,000 Land 18,000 40,000 Equipment Accumulated depreciation-equipment Total assets 70,000 60,000 (20,000) (13,000) $207,000 $195,000 Liabilities and Stockholders' Equity Accounts payable $12,000 $6,000 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 28,000 55,000 Total liabilities and stockholder's equity $207,000 $195,000 Additional information: 1 Net loss for 2025 is $12,000. Net sales for 2025 are $250,000. 2. Cash dividends of $15,000 were declared and paid in 2025. 3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5. $12,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2025 using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. enter O for amounts.) A1 BEAUTY SUPPLY CORPORATION Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to $ > $ $
Current Attempt in Progress The comparative balance sheets for the A1 Beauty Supply Corporation is presented below: A1 BEAUTY SUPPLY CORPORATION Comparative Balance Sheets Assets 2025 2024 Cash Accounts receivable (net) Prepaid insurance $37,000 $31,000 80,000 60,000 22,000 17,000 Land 18,000 40,000 Equipment Accumulated depreciation-equipment Total assets 70,000 60,000 (20,000) (13,000) $207,000 $195,000 Liabilities and Stockholders' Equity Accounts payable $12,000 $6,000 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 28,000 55,000 Total liabilities and stockholder's equity $207,000 $195,000 Additional information: 1 Net loss for 2025 is $12,000. Net sales for 2025 are $250,000. 2. Cash dividends of $15,000 were declared and paid in 2025. 3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year. 4. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5. $12,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000. Prepare a statement of cash flows for the year ended December 31, 2025 using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank. enter O for amounts.) A1 BEAUTY SUPPLY CORPORATION Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to $ > $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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