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Solved by verified expert :ACCT122 – Spring 2014Due March 8, 2014 Project #2Preparation of a Statement of Cash Flows – Indirect MethodUsing the provided information for National Brands Corporation, answer the following questions:a. What is the book value of the equipment sold?b. What is the book value of the building sold?c. Prepare a statement of stockholders’ equityd. Prepare a statement of cash flows using the indirect method.Your answer may be submitted using Excel or Word; please make sure it is in the proper format.Plant assets:? Acquisitions for the year were \$47,000 cash.? Depreciation expense – \$4,100Common stock was issued for \$88,000.Equipment:? Acquisitions for the year were \$20,000 by executing a note payable.? Sold equipment for \$35,000 cash. Calculate the gain/loss (analyze the t-account).? Depreciation expense – \$4,000Buildings:? Sold a building for \$31,700 cash. Calculate the gain/loss (analyze the t-account).? Depreciation expense – \$6,000Treasury stock was sold for \$45,000 cash.Cash dividends of \$15,000 were paid.Net income/ (loss) for the year is calculated from the activity in Retained Earnings.National Brands CorporationComparative Balance SheetDecember 31, 2013December 31, 2013 December 31, 2012Cash \$180,200 \$15,000Accounts Receivable 15,000 28,600Inventory 23,800 17,000Prepaid expenses 3,000 5,700Equipment 16,000 36,400Plant assets 52,900 10,000Building 84,000 114,500\$374,900 \$227,200Accounts payable (merchandise) \$37,400 \$16,000Salary payable 5,500 4,000Accrued liabilities 15,000 19,300Income tax payable 3,800 3,000Notes payable 117,000 97,000Common stock 138,000 50,000Treasury stock 0 (45,000)Retained earnings 58,200 82,900\$374,900 \$227,200

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