Problem - A comparative balance sheet for Roxanne Company is presented below:
Comparative Balance Sheet
2017 2016
Assets
Cash $ 39,000 $ 31,000
Accounts receivable (net) 80,000 60,000
Prepaid insurance 22,000 17,000
Land 18,000 40,000
Equipment 70,000 60,000
Accumulated depreciation (20,000) (13,000)
Total Assets $209,000 $195,000
Liabilities and Stockholders' Equity
Accounts payable $ 11,000 $ 6,000
Bonds payable 27,000 19,000
Common stock 140,000 115,000
Retained earnings 31,000 55,000
Total liabilities and stockholders' equity $209,000 $195,000
Additional information:
1. Net loss for 2017 is $20,000.
2. Land was sold for cash at a loss of $10,000. This was the only land transaction during the year.
3. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
4. $12,000 of bonds was retired during the year at carrying (book) value.
5. Equipment was acquired for common stock. The fair market value of the stock at the time of the exchange was $25,000.
Instructions:
1. Prepare Operating Activities for SCF, using Indirect Method.
2. Using the data above prepared a correct form the classified balance sheet for 2017.