The comparative balance sheets of Posner Company, for Years 1 and 2 ended December 31, appear below in condensed form: 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 flow, 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:  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 flow, 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:  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 flow, using the indirect method of reporting cash flows from operating activities.

The Comparative Balance Sheets of Posner Company, for Years 1