Statement of cash flows for the following: The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:   1   Dec. 31, 20Y3 Dec. 31, 20Y2 2 Assets     3 Cash $155,000.00 $150,000.00 4 Accounts receivable (net) 450,000.00 400,000.00 5 Inventories 770,000.00 750,000.00 6 Investments 0.00 100,000.00 7 Land 500,000.00 0.00 8 Equipment 1,400,000.00 1,200,000.00 9 Accumulated depreciation-equipment (600,000.00) (500,000.00) 10 Total assets $2,675,000.00 $2,100,000.00 11 Liabilities and Stockholders’ Equity     12 Accounts payable (merchandise creditors) $340,000.00 $300,000.00 13 Accrued expenses payable (operating expenses) 45,000.00 50,000.00 14 Dividends payable 30,000.00 25,000.00 15 Common stock, $4 par 700,000.00 600,000.00 16 Paid-in capital in excess of par—common stock 200,000.00 175,000.00 17 Retained earnings 1,360,000.00 950,000.00 18 Total liabilities and stockholders’ equity $2,675,000.00 $2,100,000.00       Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:   a. The investments were sold for $175,000 cash.   b. Equipment and land were acquired for cash.   c. There were no disposals of equipment during the year.   d. The common stock was issued for cash.   e. There was a $500,000 credit to Retained Earnings for net income.   f. There was a $90,000 debit to Retained Earnings for cash dividends declared.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Statement of cash flows for the following:

The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
 
1
 
Dec. 31, 20Y3
Dec. 31, 20Y2
2
Assets
 
 
3
Cash
$155,000.00
$150,000.00
4
Accounts receivable (net)
450,000.00
400,000.00
5
Inventories
770,000.00
750,000.00
6
Investments
0.00
100,000.00
7
Land
500,000.00
0.00
8
Equipment
1,400,000.00
1,200,000.00
9
Accumulated depreciation-equipment
(600,000.00)
(500,000.00)
10
Total assets
$2,675,000.00
$2,100,000.00
11
Liabilities and Stockholders’ Equity
 
 
12
Accounts payable (merchandise creditors)
$340,000.00
$300,000.00
13
Accrued expenses payable (operating expenses)
45,000.00
50,000.00
14
Dividends payable
30,000.00
25,000.00
15
Common stock, $4 par
700,000.00
600,000.00
16
Paid-in capital in excess of par—common stock
200,000.00
175,000.00
17
Retained earnings
1,360,000.00
950,000.00
18
Total liabilities and stockholders’ equity
$2,675,000.00
$2,100,000.00
 
 
 
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
  a. The investments were sold for $175,000 cash.
  b. Equipment and land were acquired for cash.
  c. There were no disposals of equipment during the year.
  d. The common stock was issued for cash.
  e. There was a $500,000 credit to Retained Earnings for net income.
  f. There was a $90,000 debit to Retained Earnings for cash dividends declared.
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