Question

The comparative balance sheets for the A1 Beauty Supply Corporation is presented below: A1 BEAUTY SUPPLY CORPORATION Comparative Balance Sheets Assets 2025 2024 Cash $37,000 $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-equipment (20,000) (13,000) Total assets $207,000 $195,000 Liabilities and Stockholders' Equity Accounts payable $12,000 $6,000 Bonds payable 27,000 19,000 Common stock 140,000 115,000 Retained earnings 28,000 55,000 Total liabilities and stockholder's equity $207,000 $195,000 Additional information: 1 Net loss for 2025 is $12,000. Net sales for 2025 are $250,000. 2 Cash dividends of $15,000 were declared and paid in 2025. 3. Land was sold for cash at a loss of $2,000. This was the only land transaction during the year. 4 Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 5 $12,000 of bonds were retired during the year at carrying (book) value. 6. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000 Prepare a statement of cash flows for the year ended December 31, 2025 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank, enter 0 for amounts) A1 BEAUTY SUPPLY CORPORATION Statement of Cash Flows - Indirect Method

          The comparative balance sheets for the A1 Beauty Supply Corporation is presented below:
A1 BEAUTY SUPPLY CORPORATION
Comparative Balance Sheets
Assets
2025
2024
Cash
$37,000
$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-equipment
(20,000)
(13,000)
Total assets
$207,000
$195,000
Liabilities and Stockholders' Equity
Accounts payable
$12,000
$6,000
Bonds payable
27,000
19,000
Common stock
140,000
115,000
Retained earnings
28,000
55,000
Total liabilities and stockholder's equity
$207,000
$195,000
Additional information:
1
Net loss for 2025 is $12,000. Net sales for 2025 are $250,000.
2
Cash dividends of $15,000 were declared and paid in 2025.
3.
Land was sold for cash at a loss of $2,000. This was the only land transaction during the year.
4
Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash.
5
$12,000 of bonds were retired during the year at carrying (book) value.
6.
Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $25,000
Prepare a statement of cash flows for the year ended December 31, 2025 using the indirect method. (Show amounts that decrease cash
flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank, enter 0 for amounts)
A1 BEAUTY SUPPLY CORPORATION
Statement of Cash Flows - Indirect Method

The comparative balance sheets for the A1 Beauty Supply Corporation is presented below:
A1 BEAUTY SUPPLY CORPORATION
Comparative Balance Sheets
Assets
2025
2024
Cash
37,00031,000
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-equipment
(20,000)
(13,000)
Total assets
207,000195,000
Liabilities and Stockholders' Equity
Accounts payable
12,0006,000
Bonds payable
27,000
19,000
Common stock
140,000
115,000
Retained earnings
28,000
55,000
Total liabilities and stockholder's equity
207,000195,000
Additional information:
1
Net loss for 2025 is 12,000. Net sales for 2025 are250,000.
2
Cash dividends of 15,000 were declared and paid in 2025.
3.
Land was sold for cash at a loss of2,000. This was the only land transaction during the year.
4
Equipment with a cost of 15,000 and accumulated depreciation of10,000 was sold for 5,000 cash.
512,000 of bonds were retired during the year at carrying (book) value.
6.
Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was 25,000
Prepare a statement of cash flows for the year ended December 31, 2025 using the indirect method. (Show amounts that decrease cash
flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Do not leave any answer field blank, enter 0 for amounts)
A1 BEAUTY SUPPLY CORPORATION
Statement of Cash Flows - Indirect Method

Added by Hector J.

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