Assignment
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Boca Inc.
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Balance Sheets
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December 31
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Assets
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2018
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2017
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Cash
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110,800
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48,400
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Accounts Receivable
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38,000
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87,800
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Inventory
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112,500
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102,850
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Prepaid Expenses
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26,000
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28,400
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Long-term Investments
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109,000
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138,000
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Plant Assets
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397,000
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242,500
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Accumulated depreciation
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-50,000
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-52,000
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Total
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743,300
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595,950
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Liabilities and Stockholders' Equity
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|
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Accounts Payable
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72,000
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67,300
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Accrued Expenses Payable
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13,500
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21,000
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Dividends Payable
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3,000
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-
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Bonds Payable
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170,000
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146,000
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Common Stock
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262,000
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175,000
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Retained Earnings
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222,800
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186,650
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Total
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743,300
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595,950
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Additional Information:
1. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
2. A new plant asset was purchased directly in exchange for common stock valued at $42,000.
3. New bonds were issued at par for $60,000.
4. Net income was $154,480.
5. A $1,000 prior period adjustment was recorded in 2017 correcting an understatement of depreciation in 2015. The 2017 balance sheet is appropriately restated.
Required:
1. Prepare a 2018 statement of cash flows using the indirect method. Use the textbook format (pages 1,420, 1,423, 1,427). Do not submit supporting computations.
SUBMISSION INFORMATION:
• Submit the assignment in Excel using one page. Include your Name, Date, ACC Course, and Homework #2 in the upper left corner.
• Submit your assignment through the upload feature within Moodle. Assignments should not be emailed to the instructor.