Financial and Managerial Accounting: P14-46 Daniels Consulting's comparative balance sheet

Financial and Managerial Accounting 
P14-46 Preparing the statement of cash flows - indirect method 
This problem continues the Daniels Consulting situation from Problem P13-47 off Chapter 13. 
Daniels Consulting's comparative balance sheet is shown on the next page. 
Daniels Consulting 
Comparative Balance Sheet 
December 31, 2017 and 2016 
2017 2016 
Assets 
Current Assets: 
Cash 1,457,524 31,700 
Accounts Receivable 25,700 700 
Office Supplies 2,150 50 
Long-term Assets: 
Plant Assets 84,800 4,800 
Accumulated Depreciation - Plant Assets (1,696) (80)
Total Assets $1,568,478 $37,170 

Liabilities 
Current Liabilities: 
Accounts Payable 7,300 4,100 
Salaries Payable 1,800 467 
Unearned Revenue - 1,600 
Interest Payable 25,000 - 
Long-term Liabilities: 
Notes Payable 500,000 - 
Bonds Payable 900,000 - 
Discount on Bonds Payable (100,862) - 
Total Liabilities 1,333,238 6,167 

Stockholders' Equity 
Common stock, $1 par 115,240 240 
Retained Earnings 120,000 30,763 
Total Stockholders' Equity 235,240 31,003 
Total Liabilities and Stockholders' Equity $1,568,478 $37,170 

Additional data follow: 
a. Depreciation expense for the year, $1,616. 
b. Daniels Consulting had no disposal of plant assets during the year. Plant assets were acquired for cash. 
c. Amortization of the discount on bonds payable for the year, $11,206. 
d. Daniels Consulting issued a bonds payable with a face value of $900,000, receiving cash of $787,932. 
e. Net income for the year was $190,537. 
f. Cash receipts from issuance of common stock totaled $115,000. 

Prepare the statement of cash flows using the indirect method.
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