15) Redbird Company uses the indirect method to prepare itsstatement of cash flows. Using the following information, completethe worksheet for the year ended December 31, 2018.
- Net Income for the year ended December 31, 2018 was$49,000
- Depreciation expense for 2018 was $12,000
- During 2018, plant assets with a book value of $10,000 (cost$10,000 and accumulated depreciation $0) were sold for $14,000
- Plant assets were acquired for $52,000 cash
- Issued common stock for $28,000
- Issued long-term notes payable for $34,000
- Repaid long-term notes payable for $40,000
- Purchased treasury stock for 3,000
- Paid dividends of $10,000
Redbird Company
Spreadsheet for Statement of Cash Flows
Year Ended December 31, 2018
| Balance 12/31/17 | Transaction Analysis Debit | Transaction Analysis Credit | Balance 12/31/18 |
Panel A—Balance Sheet: | | | | |
Cash | $18,000 | | | $21,000 |
Accounts Receivable | 35,000 | | | 31,000 |
Merchandise Inventory | 25,000 | | | 53,000 |
Plant Assets | 70,000 | | | 112,000 |
Accumulated Depreciation—Plant Assets | (20,000) | | | (32,000) |
Total Assets | $128,000 | | | $185,000 |
| | | | |
Accounts Payable | 6,000 | | | 4,000 |
Accrued Liabilities | 1,000 | | | 2,000 |
Long-term Notes Payable | 50,000 | | | 44,000 |
Common Stock | 2,000 | | | 30,000 |
Retained Earnings | 74,000 | | | 113,000 |
Treasury Stock | (5,000) | | | (8,000) |
Total Liabilities and Stockholders' Equity | $128,000 | | | $185,000 |
