90.2K

Verified Solution

Link Copied!

Problem 21-18 Statement of cash flows; indirect method [LO21-4, 21-8] The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company Additional formation from Arduous's accounting records is provided also. ARDOS CORONY Comparative Balance Sheets December 31, 2018 and 2017 Prepaid in Buildings and equipment Test A lated depreciation Liabilities te payable Salaries payable Bond Interat payable Tacone tax payable Deferred income tax liability Les lability honde payable Less Discount on bonds Shareholdere Eity Como stock Paldis capitales of a Preferred stock Retained warning ter Treaty stock ARDUOUS COND For Year Ended December 31, 2014 ( In illone) dais on sale of Grey billa Additional information from the accounting records a. Investment revenue includes Arduous Company's $22 million share of the net income of Demur Company, an equity method vestee Treasury bills were sold during 2018 at again of $2 million. Arduous Company classifies its investments in Treasury bias cash equivalent A machine originally costing $102 milion that was one-half depreciated was rendered unable by a food. Most components of the machine were unarmed and were sold for $22 million d. Temporary differences between pretax accounting income and taxable income caused the deferred income tax b y to increase by $19 million e. The preferred stock of Tory Corporation was purchased for $41 million as a long term investment Land costing $62 million was acquired by issuing $31 million cash and a 12% four year. $31 million note payable to the seller The right to use a building was acquired with a 15 year lease agreement present value of lease payments, $98 million Annual lease payments of $9 million are paid at the beginning of each year starting January 1, 2018 h. $76 milion of bonds were retired at maturity L in February, Arduous issued a stock dividend 104 milion shares. The market price of the $5 par value common stock was 750 per what that time In April 1mon shares of common stock were repurchased as treasury stock at a cost of $25 million Required: Prepare the statement of cash flows for Arduous Company using the Indirect method (Amounts to be deducted should be Indicated with a minus sign. Do not round your intermediate calculations. Enter your answers in millions le 10.000.000 should be entered as 10.1) ARDUOUS COMPANY Statement of Cash Flow For year ended December 31, 2018 5 in millions)

Answer & Explanation Solved by verified expert

See Answer