P13-9A_Sinjh Inc._Cash_Flow Statement

$14.00

Description

P13-9A Condensed financial data of sinjh
Inc. follow.

Sinjh Inc.

Comparative Balance Sheets

December 31

Assets

2014 2013

Cash

$100,350 $ 48,400

Accounts receivable

92,800 33,000

Inventory

112,500 102,850

Prepaid expenses

29,300 26,000

Long-term investments

140,000 114,000

Plant assets

265,000 242,500

Accumulated depreciation

(47,000) (52,000)

Total

$692,950 $514,750

Liabilities and Stockholders’ Equity

Accounts payable

$112,000 $ 67,300

Accrued expenses payable

16,500 17,000

Bonds payable

110,000 150,000

Common stock

220,000 175,000

Retained earnings

234,450 105,450

Total

$692,950 $514,750

Sinjh Inc

Sales
revenue

Gain on
disposal of plant assets

$392,780

5,000

Less:

Cost of
goods sold

135,460

Operating
expenses, excluding

depreciation

12,410

Depreciation
expense

45,000

Income tax
expense

27,280

Interest
expense

4,730 224,880

Net income

$172,900

Additional information:

1.
New plant assets costing $80,000 were purchased for cash during the
year.

2.
Old plant assets having an original cost of $57,500 and accumulated
depreciation of $50,000 were sold for $12,500 cash.

3.
Bonds payable matured and were paid off at face value for cash.

4.
A cash dividend of $43,900 was declared and paid during the year,

Instructions

Prepare a statement of cash flows using
the indirect method.

P13-10A – Data for Sigh Inc. are
presented in P13-9A. Further analysis reveals that accounts payable pertains to
Merchandise Creditors.

Prepare a statement of cash flows using
the direct method.

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