A) bought equipment for cash $48,900 B) Paid $14,700 on long-term note payable C) issued new shares of stock for $38,050 cash D) Dividends of $650 were declared and paid E) other expenses all relate to wages F) Accounts payable includes only inventory purchases made on credit Prepare the statement of cash flows using the indirect method for the year ended December 31, current year Sharp Screen Films, Inc., is developing its annual financial statements on December 31, for the currentyear. The statements are complete except for the statement of cash flows. The complete comparativebalance sheets and income statement are summarized as follows:Current Year Prior YearBalance sheet at December 31CashS 73.250S 63.500Accounts receivable15.25021.350Merchandise inventory23,45018,000Property and equipment209.250160,350Less: Accumulated depreciation(57,450)145,750)$263,750S217450Accounts payableS 16.500$ 19,000Wages payable2.0002,700Note payable, long-term56,30071,000Common stock and additional paid-in capital103.95065,900Retained earnings85.00058.850$263,750S217.450Income statement for current yearSaless205,000Cost of goods sold123,500Depreciation expense11.700Other expenses43.000Net income$ 26.800

Name: A) bought equipment for cash $48,900 B) Paid $14,700 on long-term note
Uploaded: 2024-03-05T11:47:04.000Z
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Description: A) bought equipment for cash $48,900 B) Paid $14,700 on long-term note payable C) issued new shares of stock for $38,050 cash D) Dividends of $650 were declared and paid E) other expenses all relate to wages F) Accounts payable includes only invento

Sharp Screen Films Inc. Cash Flow Statement (Indirect Method) For the year ended December 31 Cash Flow from Operating Activities Amount (In $) Amount (In $) Net Profit (Loss) 26,800 Depreciation Expense 11,700 Changes in Current Assets and Current Liabilities: Decrease in accounts receivable 6,100 Increase in Merchandise Inventory (5,450) Decrease in Wages payable (700) Decrease in accounts Payable (2,500) Net cash generated from (used in) operating activities (A) 35,950 Cash Flow from Investing Activities Purchase of Equipment (48,900) Net cash generated from (used in) Investing activities (B) (48,900) Cash Flow from Financing Activities Dividends Paid (650) Issue of Common Stock 38,050 Repayment of Long-term Notes Payable (14,700) Net cash generated from (used in) Financing activities (C ) 22,700 Net cash generated from (used in) Operating Activities, Investing Activities and Financing activities (A) + (B) + (C ) 9,750 Opening Balance of cash and Cash Equivalents 63,500 Closing Balance of cash and Cash Equivalents 73,250Property and Equipment Debit Credit Particulars Amount (In $) Particulars Amount (In $) Balance b/d 1,60,350 Cash 48,900 Balance c/d 2,09,250 Total 2,09,250 Total 2,09,250 Accumulated Depreciation Debit Credit Particulars Amount (In $) Particulars Amount (In $) Balance b/d 45,750 Depreciation Expense 11,700 Balance c/d 57,450 Total 57,450 Total 57,450 Long-Term Note Payable Debit Credit Particulars Amount (In $) Particulars Amount (In $) Cash 14,700 Balance b/d 71,000 Balance c/d 56,300 Total 71,000 Total 71,000 Common Stock and Additional Paid in capital Debit Credit Particulars Amount (In $) Particulars Amount (In $) Balance b/d 65,900 Cash 38,050 Balance c/d 1,03,950 Total 1,03,950 Total 1,03,950 Retained Earnings Debit Credit Particulars Amount (In $) Particulars Amount (In $) Dividend Paid 650 Balance b/d 58,850 Net Income 26,800 Balance c/d 85,000 Total 85,650 Total 85,650 Wages Payable Debit Credit Particulars Amount (In $) Particulars Amount (In $) Cash 43,700 Balance b/d 2,700 Income Summary 43,000 Balance c/d 2,000 Total 45,700 Total 45,700