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Posts: 161
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2 years ago
Alma Ortiz prepared Carlee Instruments' balance sheet and income statement for 2021. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Carlee's president, Mike Lymon, has asked you to prepare the statement of cash flows. Lymon has provided you with the balance sheet and income statement that Ortiz prepared, as well as some notes she made: | For the Year Ended December 31, 2021 | |
| Cost of goods sold | 69,800 |
| Administrative expense | 8,000 |
| Depreciation expense | 1,500 |
| Interest expense | 4,000 | 46,500 |
| Income before gain and taxes | 11,600 |
| Comparative Balance Sheets |
| Accounts receivable, net | 6,800 | 5,500 |
| Total current assets | 46,600 | 44,000 |
| Property, plant, & equipment, net | 211,900 | 214,300 |
| Total Assets | $258,500 | $258,300 |
| Accounts payable | $ 3,400 | $ 4,900 |
| Salaries payable | 1,900 | 1,500 |
| Note payable | 60,500 | 50,000 |
| Total liabilities | 68,400 | 59,700 |
| Common stock | 125,000 | 125,000 |
| Retained earnings | 65,100 | 73,600 |
| Total stockholders' equity | 190,100 | 198,600 |
| Total liabilities & stockholders' equity | $258,500 | $258,300 |
| • | Equipment with an original cost of $35,000 was sold for $20,300. The book value |
of the equipment was $19,400. | • | On June 1, 2021, the company purchased new equipment for cash at a cost of $18,500. |
| • | At the end of the year the company issued notes payable for $10,500 cash. The note |
will mature on December 31, 2024. | • | The company paid $20,200 in cash dividends for the year. |
Required: Using the direct method, prepare Carlee Instruments' statement of cash flows for 2021.
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