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statement of cash flows using the indirect method fo

statement of cash flows using the indirect method fo

FINANCIAL ACCOUNTING
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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Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income GOLDEN CORPORATION Comparative Balance Sheets. December 31 Additional Information on Current Year Transactions a. Purchased equipment for $56,300 cash. b. Issued 13,200 shares of common stock for $5 cash per share. c. Declared and paid $101,000 in cash dividends. Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from financing activities: $ 1,852,000 1,098,000 754,000 506,000 54,000 194,000 38,800 $ 155,200 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year Current Year $ 176,000 101,000 619,000 896,000 367,300 (164,000) $ 1,099,300 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) $ 111,000 40,000 151,000 606,400 217,600 124,300 $ 1,099,300 S S S 0 0 0 0 Prior Year 0 $ 120,200 83,000 538,000 741,200 311,000 (110,000) $ 942,200 $ 83,000 31,100 114,100 580,000 178,000 70,100 $ 942, 200
Transcribed Image Text:Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income GOLDEN CORPORATION Comparative Balance Sheets. December 31 Additional Information on Current Year Transactions a. Purchased equipment for $56,300 cash. b. Issued 13,200 shares of common stock for $5 cash per share. c. Declared and paid $101,000 in cash dividends. Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Cash flows from financing activities: $ 1,852,000 1,098,000 754,000 506,000 54,000 194,000 38,800 $ 155,200 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year Current Year $ 176,000 101,000 619,000 896,000 367,300 (164,000) $ 1,099,300 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) $ 111,000 40,000 151,000 606,400 217,600 124,300 $ 1,099,300 S S S 0 0 0 0 Prior Year 0 $ 120,200 83,000 538,000 741,200 311,000 (110,000) $ 942,200 $ 83,000 31,100 114,100 580,000 178,000 70,100 $ 942, 200
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