Statement of Cash Flows Problem – The records of the LEI Corporation provided the full… 1 answer below »

Statement of Cash Flows Problem

The records of the LEI Corporation provided the full comparative balance sheets for January1, 2018 and December31,2018. Additional Information from LEI corporation’s accounting records is provided also.

LEI Corporation Balance sheet

January1,2018 December 31,2018

Cash 15,000 31,000

Accounts Receivable 30,000 28,000

Allowance for doubtful Account (1,500) (2,000)

Inventory 10,000 15,000

Long term Investment 2,400 1,400

Operational Assets 80,000 81,000

Accumulated Depreciation (20,000) (16,000)

Land 40,100 81,100

Accounts Payables 10,000 11,000

Wages Payables 2,000 1,000

Interest Payables 0 1,000

Notes Payables, long-term 20,000 46,000

Common Stock 80,000 110,000

Additional paid in capital 20,000 26,000

Retained Earnings 24,000 25,000

Additional Information

· Recorded the results of its 25% equity -based investment in Sara Company’s net loss of 4,000

· Sold an operational asset for 4,000 in cash the asset had an original cost basing 15,000 and a carrying value at disposition of $6,000

· Wrote off $3,000 of accounts receivables as uncollectible

· Acquired land value at $ 21,000 and issued commons stock in exchange for a note payable bearing interest at 5%

· Paid incomes taxes of $2,000

· Settled a $ 10,000 long term note payable by issuing common stock to the creditor

· Declared a dividend of $ 5,000

Instructions:Prepare a statement of cash flows using Indirect Method.

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