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The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $61, 339 28, 418 156, 774 2,395 259, 520 (138, 830) 194, 188 $563, 796 $65, 792 24, 267 253,000 220, 737 $563, 796 $1,495,000 (794,543) 700,457 (20,610) (22,540) (259, 320) Year 1 (258,350) $139,637 $41, 170 29,849 172,459 4,799 287,678 (230,570) 81, 180 $377,539 74,638 20, 809 201,000 81, 100 $377,530 Depreciation expense Rent expense Salaries expense other operating expenses Net income Other Information 1. Purchased land for $113,000. 2. Purchased new equipment for $104,600. 3. Sold old equipment that cost $132.750 with accumulated depreciation of $112,350 for $20,400 cash. 4. Issued common stock for $52,000. Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a m

The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $61, 339 28, 418 156, 774 2,395 259, 520 (138, 830) 194, 188 $563, 796 $65, 792 24, 267 253,000 220, 737 $563, 796 $1,495,000 (794,543) 700,457 (20,610) (22,540) (259, 320) Year 1 (258,350) $139,637 $41, 170 29,849 172,459 4,799 287,678 (230,570) 81, 180 $377,539 74,638 20, 809 201,000 81, 100 $377,530 Depreciation expense Rent expense Salaries expense other operating expenses Net income Other Information 1. Purchased land for $113,000. 2. Purchased new equipment for $104,600. 3. Sold old equipment that cost $132.750 with accumulated depreciation of $112,350 for $20,400 cash. 4. Issued common stock for $52,000. Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a m

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 4E
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11 03:03:45 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $61, 339 28,418 156, 774 Cash flows from operating activities: 2,395 259, 520 (138, 830) 194, 180 $563, 796 $65, 792 24, 267 253,000 220, 737 $563,796 $1,495,000 (794,543) 700,457 (20,610) (22,540) (259, 320) (258,350) $139,637 Year 1 $41, 170 20, 840 450 172, RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 4,790 287,678 (230,570) 81, 188 $377,538 Depreciation expense Rent expense Salaries expense other operating expenses Net income Other Information 1. Purchased land for $113,000. 2. Purchased new equipment for $104,600. 3. Sold old equipment that cost $132.750 with accumulated depreciation of $112,350 for $20,400 cash. 4. Issued common stock for $52,000. 74,630 20, 800 201, 009 81, 100 $377,539 Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.)
Transcribed Image Text:11 03:03:45 The comparative balance sheets and an income statement for Raceway Corporation follow. Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation Land Total assets Liabilities Accounts payable (inventory) Salaries payable Stockholders' equity Common stock, $50 par value Retained earnings Total liabilities and equity Income Statement For the Year Ended December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses Year 2 $61, 339 28,418 156, 774 Cash flows from operating activities: 2,395 259, 520 (138, 830) 194, 180 $563, 796 $65, 792 24, 267 253,000 220, 737 $563,796 $1,495,000 (794,543) 700,457 (20,610) (22,540) (259, 320) (258,350) $139,637 Year 1 $41, 170 20, 840 450 172, RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 4,790 287,678 (230,570) 81, 188 $377,538 Depreciation expense Rent expense Salaries expense other operating expenses Net income Other Information 1. Purchased land for $113,000. 2. Purchased new equipment for $104,600. 3. Sold old equipment that cost $132.750 with accumulated depreciation of $112,350 for $20,400 cash. 4. Issued common stock for $52,000. 74,630 20, 800 201, 009 81, 100 $377,539 Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.)
Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.) Cash flows from operating activities: Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from financing activities: Ending cash balance
Transcribed Image Text:Required Prepare the statement of cash flows for Year 2 using the indirect method. (Cash outflows should be indicated with a minus sign.) Cash flows from operating activities: Plus: Decreases in current assets and increases in current liabilities Less: Increases in current assets and decreases in current liabilities: Plus: Noncash charges Cash flows from investing activities: RACEWAY CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from financing activities: Ending cash balance
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