Balance sheets for Brierwold Corporation follow: Brierwold.
Balance sheets for Brierwold Corporation follow:
| Brierwold Corporation |
| Balance Sheet |
| 1 | Beginning Balances
| Ending Balances
| |
|---|---|---|---|
| 2 | Assets: | ||
| 3 | Cash | $100,000.00 | $150,000.00 |
| 4 | Accounts receivable | 200,000.00 | 180,000.00 |
| 5 | Inventory | 400,000.00 | 410,000.00 |
| 6 | Plant and equipment | 700,000.00 | 690,000.00 |
| 7 | Accumulated depreciation | (200,000.00) | (245,000.00) |
| 8 | Land | 100,000.00 | 150,000.00 |
| 9 | Total assets | $1,300,000.00 | $1,335,000.00 |
| 10 | Liabilities and equity: | ||
| 11 | Accounts payable | $300,000.00 | $250,000.00 |
| 12 | Mortgage payable | 0.00 | 110,000.00 |
| 13 | Preferred stock | 100,000.00 | 0.00 |
| 14 | Common stock | 240,000.00 | 280,000.00 |
| 15 | Paid-in capital in excess of par | 360,000.00 | 420,000.00 |
| 16 | Retained earnings | 300,000.00 | 275,000.00 |
| 17 | Total liabilities and stockholders’ equity | $1,300,000.00 | $1,335,000.00 |
Additional transactions were as follows:
| A. | Purchased equipment costing $50,000. |
| B. | Sold equipment costing $60,000, with a book value of $25,000, for $40,000. |
| C. | Retired preferred stock at a cost of $110,000. (The premium is debited to Retained Earnings.) |
| D. | Issued 10,000 shares of common stock (par value, $4) for $10 per share. |
| E. | Reported a loss of $15,000 for the year. |
| F. | Purchased land for $50,000. |
| Required: | |
|---|---|
| Prepare a statement of cash flows using the indirect method |
Refer to the list below for exact wording of an amount description within your Statement of Cash Flows.
| Amount Descriptions | |
|---|---|
| Decrease in accounts payable | |
| Decrease in accounts receivable | |
| Decrease in inventory | |
| Depreciation expense | |
| Gain on sale of equipment | |
| Increase in accounts payable | |
| Increase in accounts receivable | |
| Increase in inventory | |
| Issuance of common stock | |
| Issuance of preferred stock | |
| Loss on sale of equipment | |
| Net cash from financing activities | |
| Net cash from investing activities | |
| Net cash from operating activities | |
| Net decrease in cash | |
| Net income | |
| Net loss | |
| Net increase in cash | |
| Purchase of equipment | |
| Purchase of land | |
| Receipt of mortgage | |
| Retirement of common stock | |
| Retirement of mortgage | |
| Retirement of preferred stock | |
| Sale of equipment | |
| Sale of land |
Prepare a statement of cash flows using the indirect method.(Use a minus sign to indicate a negative amount. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
| Brierwold Corporation |
| Statement of Cash Flows |
| For the Year ended December 31, 20X2 |
| 1 | Cash flows from operating activities: | ||
|---|---|---|---|
| 2 | |||
| 3 | Add (deduct) adjusting items: | ||
| 4 | |||
| 5 | |||
| 6 | |||
| 7 | |||
| 8 | |||
| 9 | |||
| 10 | Cash flows from investing activities: | ||
| 11 | |||
| 12 | |||
| 13 | |||
| 14 | |||
| 15 | Cash flows from financing activities: | ||
| 16 | |||
| 17 | |||
| 18 | |||
| 19 | |||
| 20 |
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