The following information is available for the Ehrens Corporation

QUESTION

The following information is available for the Ehrens Corporation:

EHRENS
CORPORATION
Balance
Sheets
At
December 31

2015

2014

Assets:

Cash

$ 34,140

$
23,040

Accounts receivable

22,180

29,400

Merchandise inventory

73,125

61,710

Land

56,400

56,400

Building and Equipment

175,500

145,500

Accumulated depreciation

(33,550)

(31,200)

Total assets

$327,795

$284,850

Liabilities:

Accounts payable

$
65,000

$
40,380

Incomes taxes payable

10,725

10,200

Bonds payable

48,750

66,000

Total liabilities

$124,475

$116,580

Equity:

Common stock

117,000

96,000

Contributed capital in excess of pay

13,000

9,000

Retained earnings

73,320

63,270

Total equity

$203,320

$168,270

Total liabilities and
equity

$327,795

$284,850

EHRENS
CORPORATION
Income
Statement
For
Year Ended December 31, 2015

Sales

$240,000

Cost of goods sold

$80,900

Depreciation expense

29,400

Other operating
expenses

48,000

Interest expense

2,000

(160,300)

Other gains (losses):

Loss on sale of equipment

(8,400)

Income before taxes

71,300

Income taxes expense

27,650

Net income

$
43,650

Additional information:
(1) Old equipment with an original cost
of $37,550 was sold for $2,100 cash.
(2) New equipment was purchased for
$67,550 cash.
(3) Bond payments of 17,250 cash were made.
(4) Cash dividends of $33,600 were paid.
(5) Additional shares of stock were
issued for $25,000 cash.

Prepare a complete
statement of cash flows for calendar-year 2015 using the indirect method.

EHREN COMPANY

Statement of Cash Flows

For Year Ended December 31, 2015

Cash flows from operating activities

Net
income……………………………………………………………………………………

_________________________________________________
_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Net cash _________ operating activities………………………………………..

Cash
flows from investing activities
__________________________________________________________________________________________________

Net cash ________in investing activities……………………………………….

Cash
flows from financing activities
___________________________________________________________________________________________________________________________________________________

Net cash _________ financing activities…………………………………………

Net _________
in cash……………………………………………………………………..

Cash balance at prior year-end………………………………………………….

Cash balance at
current year-end……………………………………………..

BE SURE YOUR WORDS AND NUMBERS ARE LEGIBLE!

ANSWER

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