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ACC 421 W5 TA P23-7 - account 3 Plant assets costing...

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P23-7 (SCF—Direct and Indirect Methods from Comparative Financial Statements) George Winston Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative statement of financial position and income statement for Winston as of May 31, 2008, are shown on the next page. The company is preparing its statement of cash flows. The following is additional information concerning Winston’s transactions during the year ended May 31, 2008. 1. All sales during the year were made on account. 2. All merchandise was purchased on account, comprising the total accounts payable
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Unformatted text preview: account. 3. Plant assets costing $98,000 were purchased by paying $48,000 in cash and issuing 5,000 shares of stock. 4. The “other expenses” are related to prepaid items. 5. All income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Winston issued 4,000 shares of common stock at par value. 7. There were no penalties assessed for the retirement of bonds. 8. Cash dividends of $105,000 were declared and paid at the end of the fiscal year....
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