Question: Condensed financial data of Granger Inc. follow. /
Condensed financial data of Granger Inc. follow.
Additional information:
1. New plant assets costing $100,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $1,500 cash.
3. Bonds payable matured and were paid off at face value for cash.
4. A cash dividend of $26,030 was declared and paid during the year.
Instructions
Prepare a statement of cash flows using the indirect method.
Transcribed Image Text:
GRANGER INC. Comparative Balance Sheets December 31 Assets 2017 2016 $ 80,800 87,800 112,500 28,400 138,000 285,000 (50,000) Cash $ 48,400 Accounts receivable Inventory Prepaid expenses Long-term investments Plant assets 38,000 102,850 26,000 109,000 242,500 (52,000) Accumulated depreciation Total $682,500 $514,750 Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock $102,000 16,500 110,000 220,000 234,000 $ 67,300 21,000 146,000 175,000 105,450 Retained earnings Total $682,500 $514,750 GRANGER INC. Income Statement Data For the Year Ended December 31, 2017 Sales revenue Less: Cost of goods sold Operating expenses, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets $388,460 $135,460 12,410 46,500 27,280 4,730 7,500 233,880 Net income $154,580
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