Additional data: 1. Depreciation expense was $17,300. 2. Dividends declared and paid were $19,860. 3. During the year, equipment was sold for $6,600 cash. This equipment originally cost $17,600 and had accumulated depreciation of $11,000 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. Prepare a statement of cash flows for Swifty Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SWIFTY COMPANY Statement of Cash Flows choose the accounting period select an opening name for section one select an item $enter a dollar amount select between addition and deduction cash payments: select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the four previous amounts select a closing name for section one enter a total amount for section one select an opening name for section two select an item enter a dollar amount select a closing name for section two enter a total amount for section two select an opening name for section three select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select a closing name for section three enter a total amount for section three enter a total amount for three sections enter a dollar amount select an item enter a dollar amount select a closing name for this statement $enter a total of the two previous amounts
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Additional data:
| 1. | ||
| 2. | Dividends declared and paid were $19,860. | |
| 3. | During the year, equipment was sold for $6,600 cash. This equipment originally cost $17,600 and had |
|
| 4. | Bonds were redeemed at their carrying value. | |
| 5. | Common stock was issued at par for cash. |
Further analysis reveals the following.
| 1. | Accounts payable pertain to merchandise suppliers. | |
| 2. | All operating expenses except for depreciation were paid in cash. | |
| 3. | All depreciation expense is in the selling expense category. | |
| 4. | All sales and inventory purchases are on account. |
Prepare a statement of
|
SWIFTY COMPANY
Statement of Cash Flows choose the accounting period |
||
|---|---|---|
|
select an opening name for section one
|
||
|
select an item
|
$enter a dollar amount
|
|
|
select between addition and deduction cash payments:
|
||
|
select an item
|
$enter a dollar amount
|
|
|
select an item
|
enter a dollar amount
|
|
|
select an item
|
enter a dollar amount
|
|
|
select an item
|
enter a dollar amount
|
|
| enter a subtotal of the four previous amounts | ||
|
select a closing name for section one
|
enter a total amount for section one
|
|
|
|
||
|
select an opening name for section two
|
||
|
select an item
|
enter a dollar amount
|
|
|
select a closing name for section two
|
enter a total amount for section two
|
|
|
select an opening name for section three
|
||
|
select an item
|
enter a dollar amount
|
|
|
select an item
|
enter a dollar amount
|
|
|
select an item
|
enter a dollar amount | |
|
select a closing name for section three
|
enter a total amount for section three | |
|
enter a total amount for three sections
|
enter a dollar amount
|
|
|
select an item
|
enter a dollar amount | |
|
select a closing name for this statement
|
$enter a total of the two previous amounts
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
