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Business
Accounting
Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity $ 64,000 18,700 167,600 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 $ 64,600 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $ 48,400 1,000 49,400

Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity $ 64,000 18,700 167,600 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 $ 64,600 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $ 48,400 1,000 49,400

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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17 At December 31 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable: Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before takes Income tax expense Net Income 5,78,000 (32,300) 45,700 9,700 12,000 23,100 5,700 $ 17,400 Current Year $ 64,000 18,700 167,600 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 216,400 39,200 $ 301,100 Prior Year $ 64,600 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $ 48,400 1,000 49,400 199,900 21,800 $ 271,100 4
Transcribed Image Text:17 At December 31 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable: Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before takes Income tax expense Net Income 5,78,000 (32,300) 45,700 9,700 12,000 23,100 5,700 $ 17,400 Current Year $ 64,000 18,700 167,600 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 216,400 39,200 $ 301,100 Prior Year $ 64,600 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $ 48,400 1,000 49,400 199,900 21,800 $ 271,100 4
a. No dividends are declared or paid. b. Issued additional stock for $16,500 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash flows from operating activities Adjustments to reconcile net income to net cash used in operating activities Income statement items not affecting cash Changes in current operating assets and liabilities MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year
Transcribed Image Text:a. No dividends are declared or paid. b. Issued additional stock for $16,500 cash. c. Purchased equipment for cash; no equipment was sold. 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. Cash flows from operating activities Adjustments to reconcile net income to net cash used in operating activities Income statement items not affecting cash Changes in current operating assets and liabilities MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Cash balance at beginning of year Cash balance at end of year
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