70.2K

Verified Solution

Link Copied!

Yoric Company listed the net changes in its balance sheet accounts for the past year as follows:

	Debits > Credits by:		Credits > Debits by:
Cash	$	112,300
Accounts receivable		170,500
Inventory			$	64,000
Prepaid expenses		4,700
Long-term loans to subsidiaries				86,000
Long-term investments		96,000
Plant and equipment		294,000
Accumulated depreciation				65,900
Accounts payable				48,300
Accrued liabilities		6,000
Income taxes payable				9,300
Bonds payable				209,000
Common stock				125,000
Retained earnings				76,000
	$	683,500	$	683,500

The following additional information is available about last years activities:

a.	Net income for the year was $ ? .
b.	The company sold equipment during the year for $35,400. The equipment originally cost $160,500 and it had $126,300 in accumulated depreciation at the time of sale.
c.	Cash dividends of $10,800 were declared and paid during the year.
d.	The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:

	Beginning	Ending
Plant and equipment	$ 2,897,000	$ 3,191,000
Accumulated depreciation	$ 986,400	$ 1,052,300

e.	The balance in the Cash account at the beginning of the year was $109,300; the balance at the end of the year was $ ? .
f.	If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.

Required:

Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)

Answer & Explanation Solved by verified expert

See Answer