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Solved! Get answer or ask a different Question 11761

The net changes in the balance sheet accounts of Vincent Corporation for the year 2004 are shown below.Account Debit Credit Cash $ 35,000Short-term investments $ 80,500Accounts receivable 83,200Allowance for doubtful accounts 13,300Inventory 64,200Prepaid expenses 18,300Investment in subsidiary (equity method) 60,000Plant and equipment 210,000Accumulated depreciation 130,000Accounts payable 90,700Accrued liabilities 21,500Deferred tax liability 15,5008% serial bonds 80,000Common stock, $10 par 90,000Additional paid-in capital 150,000Retained earningsâAppropriation for bonded indebtedness 60,000Retained earningsâUnappropriated 85,000 $643,600 $643,600An analysis of the Retained EarningsâUnappropriated account follows:Retained earnings unappropriated, December 31, 2003 $1,300,000Add: Net income 218,000Transfer from appropriation for bonded indebtedness 60,000Total $1,578,000Deduct: Cash dividends $123,000Stock dividend 240,000 363,000Retained earnings unappropriated, December 31, 2004 $1,215,0001. On January 2, 2004 short-term investments (classified as available-for-sale) costing $80,500 were sold for $103,000.2. The company paid a cash dividend on February 1, 2004.3. Accounts receivable of $16,200 and $19,400 were considered uncollectible and written off in 2004 and 2003, respectively.4. Major repairs of $22,000 to the equipment were debited to the Accumulated Depreciation account during the year. No assets were retired during 2004.5. The wholly owned subsidiary reported a net loss for the year of $60,000. The loss was recorded by the parent.6. At January 1, 2004, the cash balance was $111,000.InstructionsPrepare a statement of cash flows (indirect method) for the year ended December 31, 2004. Vincent Corporation has no securities which are classified as cash equivalents.

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