Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 242,400 $ 145,200 Accounts receivable 263,400 114,000 Inventory 337,500 308,550 Prepaid expenses 85,200 78,000 Long-term investments 414,000 327,000 Plant assets 855,000 727,500 Accumulated depreciation (150,000 ) (156,000 ) Total $2,047,500 $1,544,250 Liabilities and Stockholders’ Equity Accounts payable $ 306,000 $ 201,900 Accrued expenses payable 49,500 63,000 Bonds payable 330,000 438,000 Common stock 660,000 525,000 Retained earnings 702,000 316,350 Total $2,047,500 $1,544,250 Shamrock, Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue $1,165,380 Less: Cost of goods sold $406,380 Operating expenses, excluding depreciation 37,230 Depreciation expense 139,500 Income tax expense 81,840 Interest expense 14,190 Loss on disposal of plant assets 22,500 701,640 Net income $ 463,740 Additional information: 1. New plant assets costing $300,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $78,090 was declared and paid during the year. Prepare a statement of cash flows using the indirect method.
Condensed financial data of Shamrock, Inc. follow. Shamrock, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 242,400 $ 145,200 Accounts receivable 263,400 114,000 Inventory 337,500 308,550 Prepaid expenses 85,200 78,000 Long-term investments 414,000 327,000 Plant assets 855,000 727,500 Accumulated depreciation (150,000 ) (156,000 ) Total $2,047,500 $1,544,250 Liabilities and Stockholders’ Equity Accounts payable $ 306,000 $ 201,900 Accrued expenses payable 49,500 63,000 Bonds payable 330,000 438,000 Common stock 660,000 525,000 Retained earnings 702,000 316,350 Total $2,047,500 $1,544,250 Shamrock, Inc. Income Statement Data For the Year Ended December 31, 2022 Sales revenue $1,165,380 Less: Cost of goods sold $406,380 Operating expenses, excluding depreciation 37,230 Depreciation expense 139,500 Income tax expense 81,840 Interest expense 14,190 Loss on disposal of plant assets 22,500 701,640 Net income $ 463,740 Additional information: 1. New plant assets costing $300,000 were purchased for cash during the year. 2. Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $78,090 was declared and paid during the year. Prepare a statement of cash flows using the indirect method.
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 12P
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Question
Condensed financial data of Shamrock, Inc. follow.
Shamrock, Inc.
Comparative Balance Sheets December 31 |
||||||
---|---|---|---|---|---|---|
Assets
|
2022
|
2021
|
||||
Cash
|
$ 242,400
|
$ 145,200
|
||||
Accounts receivable
|
263,400
|
114,000
|
||||
Inventory
|
337,500
|
308,550
|
||||
Prepaid expenses
|
85,200
|
78,000
|
||||
Long-term investments
|
414,000
|
327,000
|
||||
Plant assets
|
855,000
|
727,500
|
||||
|
(150,000
|
)
|
(156,000
|
)
|
||
Total
|
$2,047,500
|
$1,544,250
|
||||
Liabilities and
|
||||||
Accounts payable
|
$ 306,000
|
$ 201,900
|
||||
Accrued expenses payable
|
49,500
|
63,000
|
||||
Bonds payable
|
330,000
|
438,000
|
||||
Common stock
|
660,000
|
525,000
|
||||
Retained earnings
|
702,000
|
316,350
|
||||
Total
|
$2,047,500
|
$1,544,250
|
Shamrock, Inc.
Income Statement Data For the Year Ended December 31, 2022 |
||||
---|---|---|---|---|
Sales revenue
|
$1,165,380
|
|||
Less:
|
||||
Cost of goods sold
|
$406,380
|
|||
Operating expenses, excluding depreciation
|
37,230
|
|||
Depreciation expense
|
139,500
|
|||
Income tax expense
|
81,840
|
|||
Interest expense
|
14,190
|
|||
Loss on disposal of plant assets
|
22,500
|
701,640
|
||
Net income
|
$ 463,740
|
Additional information:
1. | New plant assets costing $300,000 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $172,500 and accumulated depreciation of $145,500 were sold for $4,500 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $78,090 was declared and paid during the year. |
Prepare a statement of cash flows using the indirect method.
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