A comparative balance sheet for Gena Company appears below: GENA COMPANY Comparative Balance Sheet Dec. 31, 2021 Dec. 31, 2020 Assets Cash $ 34,000 $11,000 Accounts receivable 21,000 13,000 Inventory 35,000 17,000 Prepaid expenses 6,000 9,000 Long-term investments -0- 17,000 Equipment 60,000 33,000 Accumulated depreciation—equipment (20,000) (15,000) Total assets $136,000 $85,000 Liabilities and Stockholders' Equity Accounts payable $ 17,000 $ 7,000 Bonds payable 36,000 45,000 Common stock 53,000 23,000 Retained earnings 30,000 10,000 Total liabilities and stockholders' equity $136,000 $85,000 Additional information: 1. Net income for the year ending December 31, 2021 was $35,000. 2. Cash dividends of $15,000 were declared and paid during the year. 3. Long-term investments that had a cost of $17,000 were sold for $14,000. 4. Depreciation expense for the year was $5,000. Instructions Prepare a full statement of cash flows for the year ended December 31, 2021, using the indirect method.
A comparative balance sheet for Gena Company appears below:
GENA COMPANY
Comparative Balance Sheet
Dec. 31, 2021 Dec. 31, 2020
Assets
Cash $ 34,000 $11,000
Accounts receivable 21,000 13,000
Inventory 35,000 17,000
Prepaid expenses 6,000 9,000
Long-term investments -0- 17,000
Equipment 60,000 33,000
Accumulated depreciation—equipment (20,000) (15,000)
Total assets $136,000 $85,000
Liabilities and
Accounts payable $ 17,000 $ 7,000
Bonds payable 36,000 45,000
Common stock 53,000 23,000
Retained earnings 30,000 10,000
Total liabilities and stockholders' equity $136,000 $85,000
Additional information:
1. Net income for the year ending December 31, 2021 was $35,000.
2. Cash dividends of $15,000 were declared and paid during the year.
3. Long-term investments that had a cost of $17,000 were sold for $14,000.
4. Depreciation expense for the year was $5,000.
Instructions
Prepare a full statement of cash flows for the year ended December 31, 2021, using the indirect
method.
Step by step
Solved in 3 steps with 2 images
