From the following balance sheet information and other data, prepare a statement of cash flows for Brown Company, using the indirect method:
|
12/31/19A |
12/31/19B |
|
|
Cash |
$ 1,800 |
$ 2,830 |
|
Accounts Receivable |
3,050 |
2,950 |
|
Prepaid Insurance |
4,310 |
5,490 |
|
Investment in Green Company (equity method) |
600 |
730 |
|
Investment in Blue Company (cost method) |
1,000 |
1,000 |
|
Land |
2,000 |
3,500 |
|
Machinery |
6,060 |
6,240 |
|
Accumulated Depreciation |
(1,070) |
(1,390) |
|
Patents |
200 |
160 |
|
Total Assets |
$17,950 |
$21,510 |
|
Wages Payable |
$ 5,630 |
$ 6,040 |
|
Note Payable (Long term) |
— |
1,500 |
|
Bonds Payable |
2,100 |
1,600 |
|
Deferred Taxes Payable |
300 |
410 |
|
Common Stock |
1,000 |
1,000 |
|
Preferred Stock |
4,000 |
4,300 |
|
Paid in Capital in Excess of Par—Preferred |
1,750 |
2,260 |
|
Retained Earnings |
3,340 |
4,400 |
|
Treasury Stock (cost method) |
(170) |
— |
|
Total Liabilities and Stockholders’ Equity |
$17,950 |
$21,510 |
Other Data:
|
(1) Net income |
$1,490 |
|
(2) Depreciation expense |
530 |
|
(3) Equity in Green Company net income |
130 |
|
(4) Loss on sale of machinery |
50 |
|
(5) Amortization of patents |
40 |
|
(6) Dividends paid (cash) |
430 |
(7) Machinery with a cost of $450 and a book value of $240 was sold for $190.
(8) Machinery was purchased for $630.
(9) Treasury stock was sold for $250 cash.
(10) Land with a fair market value of $1,500 was purchased by the issuance of a long term note payable.
(11) Preferred stock was issued for $230 cash.
(12) The remaining changes in the Preferred Stock account and in the Paid in Capital in Excess of Par account resulted from the issuance of preferred stock to retire $500 of bonds payable.