The following is a comparative balance sheet of Conumdrum Corporation for December 31,2014 and 2013:

Additional information:
(a)Net income for 2014,$545,600.
(b)Depreciation reported on income statement,$140,000.
(c)Fully depreciated equipment,no salvage value,was scrapped.Equipment was purchased for $560,000.
(d)Bonds of $400,000 were retired at their face value.
(e)10,000 shares of common stock were issued for cash at $28 per share.
(f)Cash dividends declared and paid,$240,000.
(g)Available-for-sale securities with a book value of $200,000 were sold for $300,000.
Prepare a statement of cash flows for Conumdrum Corporation for 2014,using the indirect method.Compute the cash flow to net income and cash flow adequacy ratios.

Question

The following is a comparative balance sheet of Conumdrum Corporation for December 31,2014 and 2013:
  
Additional information:
(a)Net income for 2014,$545,600.
(b)Depreciation reported on income statement,$140,000.
(c)Fully depreciated equipment,no salvage value,was scrapped.Equipment was purchased for $560,000.
(d)Bonds of $400,000 were retired at their face value.
(e)10,000 shares of common stock were issued for cash at $28 per share.
(f)Cash dividends declared and paid,$240,000.
(g)Available-for-sale securities with a book value of $200,000 were sold for $300,000.
Prepare a statement of cash flows for Conumdrum Corporation for 2014,using the indirect method.Compute the cash flow to net income and cash flow adequacy ratios.

Quizplus · Accepted Answer

The Answer of The following is a comparative balance sheet of Conumdrum Corporation for December 31,2014 and 2013:
  
Additional information:
(a)Net income for 2014,$545,600.
(b)Depreciation reported on income statement,$140,000.
(c)Fully depreciated equipment,no salvage value,was scrapped.Equipment was purchased for $560,000.
(d)Bonds of $400,000 were retired at their face value.
(e)10,000 shares of common stock were issued for cash at $28 per share.
(f)Cash dividends declared and paid,$240,000.
(g)Available-for-sale securities with a book value of $200,000 were sold for $300,000.
Prepare a statement of cash flows for Conumdrum Corporation for 2014,using the indirect method.Compute the cash flow to net income and cash flow adequacy ratios.

The Following Is a Comparative Balance Sheet of Conumdrum Corporation