Financial Accounting: An Integrated Statements Approach, 2nd Edition

614 Chapter 13 Statement of Cash Flows

The comparative balance sheet of Sunrise Juice Co. at December 31, 2007 and 2006, is as follows:

Dec. 31, 2007 Dec. 31, 2006

Assets

Cash $ 405,200 $ 432,100

Accounts receivable (net) 324,100 305,700

Inventories 602,300 576,900

Prepaid expenses 10,000 12,000

Land 100,000 190,000

Buildings 650,000 400,000

Accumulated depreciation—buildings (172,500) (155,000)

Equipment 225,600 210,700

Accumulated depreciation—equipment (48,100) (56,500)

Total $2,096,600 $1,915,900

Liabilities and Stockholders’ Equity

Accounts payable (merchandise creditors) $ 399,100 $ 402,600

Bonds payable 80,000 0

Common stock, $1 par 60,000 50,000

Paid-in capital in excess of par—common stock 350,000 200,000

Retained earnings 1,207,500 1,263,300

Total $2,096,600 $1,915,900

The noncurrent asset, the noncurrent liability, and the stockholders’ equity accounts for 2007 are

as follows:

Problem 13-3A

Statement of cash flows—

indirect method

Goal 2

Net cash flow from

operating activities, ($53,000)

LAND

Jan. 1 Balance 190,000 April 20 Realized $81,000

cash from sale 90,000

Dec. 31 Balance 100,000

BUILDINGS

Jan. 1 Balance 400,000

Apr. 20 Acquired for cash 250,000

Dec. 31 Balance 650,000

ACCUMULATED DEPRECIATION—BUILDINGS

Jan. 1 Balance 155,000

Dec. 31 Depreciation for year 17,500

Dec. 31 Balance 172,500

EQUIPMENT

Jan. 1 Balance 210,700 Jan. 26 Discarded, no salvage 18,000

Aug. 11 Purchased for cash 32,900

Dec. 31 Balance 225,600

ACCUMULATED DEPRECIATION—EQUIPMENT

Jan. 26 Discarded, no salvage 18,000 Jan. 1 Balance 56,500

Dec. 31 Depreciation for year 9,600

Dec. 31 Balance 48,100

BONDS PAYABLE

May 1 Issued 20-year bonds 80,000

Dec. 31 Balance 80,000