124. Based on the following information, prepare a statement of cash flows for Year 2. Use the indirect method. The XYZ Corporation Comparative Balance Sheet As of December 31, Year 1 and Year 2 December 31, Assets Current assets Cash $ 10,000 $30,000 Accounts receivable 20,000 15,000 Inventories Total current assets Property, plant, and equipment Land 10,000 10,000 Building and equipment 100,000 120,000 Accumulated depreciation ) Total property, plant,and equipment Total Assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Total current liabilities Noncurrent liabilities Bonds payable 50,000 40,000 Notes payable Total noncurrent liabilities 70,000 70,000 Shareholders' equity Common stock 20,000 30,000 Retained earnings Total shareholders' equity Total Liabilities and Shareholders' Equity Dividends paid during Year 2 are $0. There were no dispositions of property during the year. 125. In the first month of operations (April Year 1) of the QuickClean Company, a service business, the following events occurred. a. Issued stock for $100,000; 20,000 shares with a $1 par value. b. Purchased equipment with a useful life of ten years for $12,000. c. Purchased a building with a useful life of 20 years for $24,000. d. Bought office supplies for $2,400. Supplies are expected to last one year. e. Paid salaries of $10,000. f. Borrowed $15,000 from bank on last day of the month. 12% interest rate payable in 90 days. g. Sold services for $20,000 on account. h. Collected $15,000 of receivables. i. Recorded expense accruals of $4,000 at end of month. Required: Prepare a balance sheet and statement of cash flow using the indirect method for the first month of operations.

124. Based on the following information, prepare a statement of cash flows for Year 2. Use the indirect method. The XYZ CorporationComparative Balance SheetAs of December 31, Year 1 and Year 2 ...

124. Based on the following information, prepare a statement of cash flows for Year 2. Use the indirect method.

The XYZ Corporation Comparative Balance Sheet As of December 31, Year 1 and Year 2
	*December 31,*

Assets
Current assets
Cash	$ 10,000	$30,000
Accounts receivable	20,000	15,000
Inventories
Total current assets
Property, plant, and equipment
Land	10,000	10,000
Building and equipment	100,000	120,000
Accumulated depreciation		)
Total property, plant,and equipment
Total Assets
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable
Total current liabilities
Noncurrent liabilities
Bonds payable	50,000	40,000
Notes payable
Total noncurrent liabilities	70,000	70,000
Shareholders' equity
Common stock	20,000	30,000
Retained earnings
Total shareholders' equity
Total Liabilities and Shareholders' Equity

Dividends paid during Year 2 are $0. There were no dispositions of property during the year.

125. In the first month of operations (April Year 1) of the QuickClean Company, a service business, the following events occurred.

a.	Issued stock for $100,000; 20,000 shares with a $1 par value.
b.	Purchased equipment with a useful life of ten years for $12,000.
c.	Purchased a building with a useful life of 20 years for $24,000.
d.	Bought office supplies for $2,400. Supplies are expected to last one year.
e.	Paid salaries of $10,000.
f.	Borrowed $15,000 from bank on last day of the month. 12% interest rate payable in 90 days.
g.	Sold services for $20,000 on account.
h.	Collected $15,000 of receivables.
i.	Recorded expense accruals of $4,000 at end of month.

Required:

Prepare a balance sheet and statement of cash flow using the
indirect method
for the first month of operations.

May 15, 2022