A comparative balance sheet for Century Company appears below: Century COMPANY Comparative Balance Sheet Dec. 31, 2015 Dec. 31, 2014 Assets Cash $ 29,000 $10,000
A comparative balance sheet for Century Company appears below:
Century COMPANY
Comparative Balance Sheet
Dec. 31, 2015 Dec. 31, 2014
Assets
Cash $ 29,000 $10,000
Accounts receivable 18,000 14,000
Inventory 27,000 18,000
Prepaid expenses 6,000 9,000
Long-term investments -0- 18,000
Equipment 60,000 32,000
Accumulated depreciation—equipment (18,000) (14,000)
Total assets $122,000 $87,000
Liabilities and Stockholders’ Equity
Accounts payable $ 17,000 $ 7,000
Bonds payable 37,000 47,000
Common stock 40,000 23,000
Retained earnings 28,000 10,000
Total liabilities and stockholders’ equity $122,000 $87,000
Additional information:
1. Net income for the year ending December 31, 2015 was $30,000.
2. Cash dividends of $12,000 were declared and paid during the year.
3. Long-term investments that had a cost of $18,000 were sold for $16,000.
4. Sales for 2015 were $150,000.
Instructions
Prepare a statement of cash flows for the year ended December 31, 2015, using the indirect method.
ACCT 221 Quiz # 2B
ANSWER SHEET
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