Question :
141. The board of directors declared cash dividends totaling $242,000 during : 1234263
141. The board of directors declared cash dividends totaling $242,000 during the current year. The comparative balance sheet indicates dividends payable of $48,000 at the beginning of the year and $59,000 at the end of the year. What was the amount of cash payments to stockholders during the year?
142. An analysis of the general ledger accounts indicates that equipment, which had cost $148,000 and on which accumulated depreciation totaled $105,000 on the date of sale, was sold for $39,000 during the year. Using this information, indicate the items to be reported on the statement of cash flows.
143. On the basis of the following data for Teller Co. for 2008 and the preceding year ended December 31, 2008, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.
144. The comparative balance sheet of Pell Company, for 2008 and the preceding year ended December 31, 2007, appears below in condensed form:
Year
Year
2008
2007
Cash
$ 53,000
$ 50,000
Accounts receivable (net)
37,000
48,000
Inventories
108,500
100,000
Investments
…..
70,000
Equipment
573,200
450,000
Accumulated depreciation-equipment
(142,000)
(176,000)
$629,700
$542,000
Accounts payable
$ 62,500
$ 43,800
Bonds payable, due 2010
…..
100,000
Common stock, $10 par
325,000
285,000
Paid-in capital in excess of par–
common stock
80,000
55,000
Retained earnings
162,200
58,200
$629,700
$542,000
The income statement for the current year is as follows:
Sales
$625,700
Cost of merchandise sold
340,000
Gross profit
$285,700
Operating expenses:
Depreciation expense
$26,000
Other operating expenses
68,000
94,000
Income from operations
$191,700
Other income:
Gain on sale of investment
$ 4,000
Other expense:
Interest expense
6,000
(2,000)
Income before income tax
$189,700
Income tax
60,700
Net income
$129,000
Additional data for the current year are as follows:
(a)
Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $183,200.
(b)
Bonds payable for $100,000 were retired by payment at their face amount.
(c)
5,000 shares of common stock were issued at $13 for cash.
(d)
Cash dividends declared and paid, $25,000.
Prepare a statement of cash flows, using the indirect method of reporting cash flows from operating activities.
145. The comparative balance sheet of Nelson Company, for 2008 and the preceding year ended December 31, 2007, appears below in condensed form:
Year
Year
2008
2007
Cash
$ 68,000
$ 42,500
Accounts receivable (net)
61,000
70,200
Inventories
121,000
105,000
Investments
…..
100,000
Equipment
515,000
425,000
Accumulated depreciation-equipment
(153,000)
(175,000)
$612,000
$567,700
Accounts payable
$ 59,750
$ 47,250
Bonds payable, due 2010
…..
75,000
Common stock, $20 par
375,000
325,000
Premium on common stock
50,000
25,000
Retained earnings
127,250
95,450
$612,000
$567,700
Additional data for the current year are as follows:
(a)
Net income, $71,800.
(b)
Depreciation reported on income statement, $38,000.
(c)
Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000.
(d)
Bonds payable for $75,000 were retired by payment at their face amount.
(e)
2,500 shares of common stock were issued at $30 for cash.
(f)
Cash dividends declared and paid, $40,000.
(g)
Investments of $100,000 were sold for $125,000.
Prepare a statement of cash flows using the indirect method.
