Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise isanxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below.CashAccounts receivableInventoryProperty, plant, and equipmentLess accumulated depreciationAccounts payableIncome taxes payableBonds payableCommon stockRetained earningsCOMPARATIVE BALANCE SHEETS12/31/25Sales revenue$608000(320000)$408000360000384000288000$1440000$176000352000360000216000336000$1440000INCOME STATEMENTFor the Year Ended December 31, 202512/31/24$960000(304000)$8400000$192000216000480000656000$1544000$96000392000600000216000240000$1544000 Sales revenueCost of salesGross profitSelling expensesAdministrative expensesIncome from operationsInterest expenseIncome before taxesIncome taxesNet income$600000The following additional data were provided:192000$8440000.$8544000.O $8400000.$8400000715200012480007920004560007200038400096000$2880001. Dividends for the year 2025 were $192000.2. During the year, equipment was sold for $240000. This equipment cost $352000 originally and had a book value of $288000 atthe time of sale. The loss on sale was incorrectly charged to cost of sales.3. All depreciation expense is in the selling expense category.Under the direct method, the cash received from customers is88256000

Cash flow :A cash flow statement is a financial statement that depicts a summary of the amount of…

Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below. Cash Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings COMPARATIVE BALANCE SHEETS 12/31/25 Sales revenue $608000 (320000) $408000 360000 384000 $960000 288000 (304000) $1440000 $176000 352000 360000 216000 336000 $1440000 INCOME STATEMENT For the Year Ended December 31, 2025 12/31/24 $8400000 $192000 216000 480000 656000 $1544000 $96000 392000 600000 216000 240000 $1544000

Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below. Cash Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings COMPARATIVE BALANCE SHEETS 12/31/25 Sales revenue $608000 (320000) $408000 360000 384000 $960000 288000 (304000) $1440000 $176000 352000 360000 216000 336000 $1440000 INCOME STATEMENT For the Year Ended December 31, 2025 12/31/24 $8400000 $192000 216000 480000 656000 $1544000 $96000 392000 600000 216000 240000 $1544000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 26BE

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Bramble Corp. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Bramble Corp. for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Sales revenue Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income INCOME STATEMENT For the Year Ended December 31, 2022 BALANCE SHEETS $607000 (321000) The following additional data were provided: $138000. $60000. O $99000. O $39000. 12/31/22 $408000 358000 $1435000 193000 383000 $598000 286000 $ 177000 354000 362000 $1435000 189000 353000 $961000 (302000) $8410000 7151000 1259000 791000 468000 72000 396000 99000 $297000 12/31/21 $193000 218000 482000 659000…
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Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below. Cash COMPARATIVE BALANCE SHEETS Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings 12/31/25 $608000 (320000) $408000 360000 384000 288000 $1440000 $176000 352000 360000 216000 336000 $1440000 12/31/24 $960000 (304000) $192000 216000 480000 656000 $1544000 $96000 392000 600000 216000 240000 $1544000
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Problem 4: Following are the comparative statements of financial position of CPA Company to add in preparing a statement of cash flows: ● CPA Company Statement of Financial Position December 31, 2021 and 2020 Assets Cash and cash equivalents Financial assets at FVPL Accounts receivable Inventory Long-term investments Property, plant and equipment Less: accumulated depreciation Patents Less: accumulated amortization Total assets Liabilities and Equity Accounts payable Income tax payable 12% bonds payable Less: discount on bonds payable Ordinary share capital Retained earnings The following events took place in 2021: 2021 P900,000 2020 P620,000 300,000 400,000 1,956,500 1,445,000 3,050,000 3,200,000 1,000,000 1,250,000 9,000,000 8,000,000 (2,200,000) (2,000,000) 600,000 600,000 (100,000) P14,606,500 P13,415,000 P2,200,000 P1,900,000 34,500 45,000 4,000,000 4,000,000 (250,000) (300,000) 7,500,000 6,500,000 1,122,000 1,270,000 P14,606,500 P13,415,000 CPA Company declared and paid cash…