The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form. The income statement for the current year is as follows: Additional data for the current year are as follows:
(a)Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new 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.

Question

The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form.​  The income statement for the current year is as follows:​  Additional data for the current year are as follows:
(a)Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new 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.

Quizplus · Accepted Answer

The Answer of The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form.​  The income statement for the current year is as follows:​  Additional data for the current year are as follows:
(a)Fully depreciated equipment costing $60,000 was scrapped, no salvage, and new 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.

The Comparative Balance Sheets of Posner Company, for Years 1