Prepare a statement of cash flows using the indirect method.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 10PA: Elegant Universal uses the balance sheet aging method to account for uncollectible debt on...
Related questions
Question
Please do not give solution in image format thanku
![Cash
Accounts receivable
Inventory
Available-for-sale debt investments
Buildings
Equipment
Patents
Allowance for doubtful accounts
Accumulated depreciation-equipment
Accumulated depreciation-building
Accounts payable
Dividends payable
Notes payable, short-term (nontrade)
Long-term notes payable
Common stock
Retained earnings
1.
2.
Additional data related to 2020 are as follows.
3.
4.
5.
6.
7.
8.
December 31
2020
$33,800 $13,100
12,100
9,900
8,900
12,000
-0-
-0-
44,500
5,100
$107,500
$3,100
2,000
-0-
5,100
-0-
3,000
31,000
43,000
20,300
$107,500
2019
3,000
29,700
19,800
6,200
$90,600
$4,500
4,500
6,100
3,000
4,900
3,900
25,000
33,000
5,700
$90,600
Equipment that had cost $11,100 and was 40% depreciated at time of disposal was sold for $2,500.
$10,000 of the long-term note payable was paid by issuing common stock.
Cash dividends paid were $4,900.
On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net
of $2,000 taxes).
Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and
investments in the past.
Cash was paid for the acquisition of equipment.
A long-term note for $16,000 was issued for the acquisition of equipment.
Interest of $2,000 and income taxes of $6,500 were paid in cash.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad2a539d-bb47-4eed-bc0e-d796c95bfe57%2F1905ee83-0cd9-48b3-8890-5ba7e9e926ef%2Fnr1hpo_processed.png&w=3840&q=75)
Transcribed Image Text:Cash
Accounts receivable
Inventory
Available-for-sale debt investments
Buildings
Equipment
Patents
Allowance for doubtful accounts
Accumulated depreciation-equipment
Accumulated depreciation-building
Accounts payable
Dividends payable
Notes payable, short-term (nontrade)
Long-term notes payable
Common stock
Retained earnings
1.
2.
Additional data related to 2020 are as follows.
3.
4.
5.
6.
7.
8.
December 31
2020
$33,800 $13,100
12,100
9,900
8,900
12,000
-0-
-0-
44,500
5,100
$107,500
$3,100
2,000
-0-
5,100
-0-
3,000
31,000
43,000
20,300
$107,500
2019
3,000
29,700
19,800
6,200
$90,600
$4,500
4,500
6,100
3,000
4,900
3,900
25,000
33,000
5,700
$90,600
Equipment that had cost $11,100 and was 40% depreciated at time of disposal was sold for $2,500.
$10,000 of the long-term note payable was paid by issuing common stock.
Cash dividends paid were $4,900.
On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net
of $2,000 taxes).
Debt investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and
investments in the past.
Cash was paid for the acquisition of equipment.
A long-term note for $16,000 was issued for the acquisition of equipment.
Interest of $2,000 and income taxes of $6,500 were paid in cash.
![Prepare a statement of cash flows 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).)
Adjustments to reconcile net income to
BONITA CORPORATION
Statement of Cash Flows
Supplemental disclosures of cash flow information:
$
$
$
$
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad2a539d-bb47-4eed-bc0e-d796c95bfe57%2F1905ee83-0cd9-48b3-8890-5ba7e9e926ef%2Fndf2d1j_processed.png&w=3840&q=75)
Transcribed Image Text:Prepare a statement of cash flows 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).)
Adjustments to reconcile net income to
BONITA CORPORATION
Statement of Cash Flows
Supplemental disclosures of cash flow information:
$
$
$
$
$
$
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Financial Reporting, Financial Statement Analysis…](https://www.bartleby.com/isbn_cover_images/9781285190907/9781285190907_smallCoverImage.gif)
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![Financial Reporting, Financial Statement Analysis…](https://www.bartleby.com/isbn_cover_images/9781285190907/9781285190907_smallCoverImage.gif)
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Intermediate Financial Management (MindTap Course…](https://www.bartleby.com/isbn_cover_images/9781337395083/9781337395083_smallCoverImage.gif)
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning