### Understanding the Statement of Cash FlowsAccountants for Morston, Inc. have assembled the following data for the year ended December 31, 2024. This information will help in preparing Morston's statement of cash flows using the indirect method. This method includes an accompanying schedule of non-cash investing and financing activities.#### Statement of Cash Flows**Morston, Inc.** **Statement of Cash Flows** **Year Ended December 31, 2024****Cash Flows from Operating Activities:**- Net Income: \[amount to be entered\]- Adjustments to Reconcile Net Income to Net Cash Provided by (Used for) Operating Activities: - \[Various adjustments to be entered\] \[List each adjustment separately in the spaces provided.\]- **Net Cash Provided by (Used for) Operating Activities:** \[amount to be entered\]#### Data TableA detailed data table is provided to assist with the preparation of the statement of cash flows. It contains critical information regarding current assets, current liabilities, and specific transaction data for 2024 and 2023.##### Data Table Breakdown:**Current Assets:**| | 2024 | 2023 ||---|---|---|| Cash | $103,700 | $17,000 || Accounts Receivable | $64,400 | $85,900 || Merchandise Inventory | $86,000 | $47,900 |**Current Liabilities:**| | 2024 | 2023 ||---|---|---|| Accounts Payable | $57,700 | $16,500 || Income Tax Payable | $14,400 | $16,200 |**Transaction Data for 2024:**- Issuance of common stock for cash: $39,000- Depreciation expense: $21,000- Purchase of equipment with cash: $68,000- Acquisition of land by issuing long-term notes payable: $114,000- Book value of building sold: $55,000- Payment of notes payable: $42,100- Issuance of notes payable to borrow cash: $68,000- Gain on sale of building: $3,000- Net income: $70,500The preparation of the statement of cash flows requires filling in the relevant sections with the provided

Cash flow statements includes: Cash flows from Operating activities Cash flows from Investing…

Accountants for Morston, Inc. have assembled the following data for the year ended December 31, 2024: (Click the icon to view the current accounts.) (Click the icon to view the transaction data.) Prepare Morston's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. KIIN Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use a minus sign or parentheses for amounts that result in a decrease in cash. If a box is not leave the box empty, do not select a label or enter a zero.) Morston, Inc. - Data table Statement of Cash Flows Year Ended December 31, 2024 Cash Flows from Operating Activities: 2024 2023 Net Income Adjustments to Reconcile Net Income to Net Cash $ 103,700 S Provided by (Used for) Operating Activities: 64,400 86,000 57,700 14,400 Net Cash Provided by (Used for) Operating Activities Data table Transaction Data for 2024: Issuance of common stock for cash Depreciation expense Purchase of equipment with cash Acquisition of land by issuing long-term notes payable Book value of building sold $ 39,000 21,000 68,000 114,000 55,000 Current Assets; Cash Accounts Receivable Merchandise Inventory Accounts Payable Income Tax Payable Print Current Liabilities: Payment of notes payable Payment of cash dividends Issuance of notes payable to borrow cash Gain on sale of building Net income - X $ 42,100 46,000 58,000 3,000 70,500 Done 17,000 68,900 81,000 56,100 16,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as negative amounts.) This will include operating, investing, and financing activities.
Cromwell Company has the following trial balance account balances, given in no certain order, as of December 31, 2018. Using the information provided, prepare Cromwell’s annual financial statements (omitthe Statement of Cash Flows)
Grier & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows: Grier & Associates Income Statement (Cash Basis) For the Year Ended December 31, 2025 Cash receipts from customers $425,000 Cash payments: Salaries and wages $170,000 Income taxes 65,000 Insurance 40,000 Interest…
Minibikes, Inc. identified the following selected transactions that occurred during the year ended December 31, 2024: (Click the icon to view the transactions.) Identify any non-cash transactions that occurred during the year, and show how they would be reported in the non-cash investing and financing Minibikes, Inc. Statement of Cash Flows (Partial) Year Ended December 31, 2024 Non-cash Investing and Financing Activities: Total Non-cash Investing and Financing Activities
The accounting staff of Corny, Inc., has assembled the following information for the year ended December 31, 2011: Using this information, prepare a statement of cash flows. Include a proper heading for the financial statement, and classify the given information into the categories of operating activities, investing activities, and financing activities. Determine net cash flows from operating activities by the direct method. Place brackets around the dollar amounts of all cash disbursements.
i did most part, not sure if its correct. how do i find the cash at the begining of the year? i got $ -5500 as net decraese in cash
The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Net income for the year 285,000 Cash dividends declared for the year 53,000 Cash dividends payable at the beginning of the year 12, 200 Cash dividends payable at the end of the year 14, 300 What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?
Baird Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Year 2 $15,000 Accounts payable $ 8,400 Year 1. $19,500 $10, 150 The Year 2 income statement showed net income of $28,700. Required a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with minus sign.) Cash flows from operating activities Net cash flow from operating activities $ 0
Shown below are totals of the three sections from the SCF for the Sivad Motel for the year just ended. Analyze this information and prepare a report indicating your opinion regarding its sources and uses of cash and their impact on the future of the company. Your conclusions and recommendations should be supported with proper explanations and assumptions. Statement of Cash Flows Net cash provided by operating activities $10,000 Net cash used by investing activities (15,000) Net cash used by financing activities (5,000) Decrease in cash for the year (10,000) Cash at beginning of year 15,000 Cash at end of…
Your supervisor has provided you with the following statement of cash flows, prepared using the indirect method. Recall that the statement of cash flows consists of three sections: cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Review the statement, and then proceed to the next panel. Championship Boxing, Inc. Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from (used for) operating activities: Net income $186,540 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 18,400 Gain on sale of investments (50,000) Changes in current operating assets and liabilities: Increase in accounts receivable (25,370) Increase in inventories (33,450) Increase in accounts payable 41,070 Decrease in accrued expenses payable (12,470) Net cash flow from operating activities $124,720 Cash flows from (used for) investing activities: Cash received from sale of investments…
Using the Exhibit below, assume that the balance of Accounts Payable was $60,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $65,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…
Using the Exhibit below, assume that the balance of Accounts Payable was $50,000 at the beginning of the current year. Furthermore, assume that the balance of Accounts Payable is $35,000 at the end of the current year. When preparing the Statement of Cash Flow using the indirect method for the current year, which of the following statements would describe the proper presentation of accounts payable on the Cash flow from operating activities section? EXHIBIT Increase (Decrease) Net Income (loss) $XXX Adjustments to reconcile net income to net cash flow from operating activities: Depreciation of fixed assets XXX Losses on disposal of assets XXX Gains on disposal of…

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