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At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Current Year 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 $ 78,000 Cost of goods sold Gross profit (32,300) 45,700 Salaries expense Depreciation expense Income before taxes Income tax expense Net income Cash flows from operating activities 9,700 12,900 23,100 5,700 $ 17,400 Cash flows from investing activities Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,500 cash. c. Purchased equipment for cash; no equipment was sold. Cash flows from financing activities $ 64,000 18,700 167,600 Changes in current operating assets and liabilities Cash balance at beginning of year Cash balance at and of year 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 216,400 39,200 $ 301,100 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. Prior Year $ 64,600 O 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $48,400 1,000 49,400 Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash 199,900 21,800 $ 271,100 MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 $ $ $ S 0 0 0 0 0

At December 31 Assets Cash MONTGOMERY INCORPORATED Comparative Balance Sheets Current Year 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 $ 78,000 Cost of goods sold Gross profit (32,300) 45,700 Salaries expense Depreciation expense Income before taxes Income tax expense Net income Cash flows from operating activities 9,700 12,900 23,100 5,700 $ 17,400 Cash flows from investing activities Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,500 cash. c. Purchased equipment for cash; no equipment was sold. Cash flows from financing activities $ 64,000 18,700 167,600 Changes in current operating assets and liabilities Cash balance at beginning of year Cash balance at and of year 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 216,400 39,200 $ 301,100 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. Prior Year $ 64,600 O 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $48,400 1,000 49,400 Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash 199,900 21,800 $ 271,100 MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 $ $ $ S 0 0 0 0 0

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 4MC: Stock subscriptions receivable are listed as __________ on the balance sheet. (a) current...
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MONTGOMERY INCORPORATED Comparative Balance Sheets 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 taxes Income tax expense Net income Cash flows from operating activities $ 78,000 (32,300) 45,700 9,700 12,900 23,100 5,700 $ 17,400 Cash flows from investing activities Current Year Prior Year Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,500 cash. c. Purchased equipment for cash; no equipment was sold. Changes in current operating assets and liabilities Cash flows from financing activities $ 64,000 18,700 167,600 Cash balance at beginning of year Cash balance at and of year 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 216,400 39,200 $ 301,100. 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. $ 64,600 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $ 48,400 1,000 49,400 Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash 199,900 21,800 $ 271,100 MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 $ $ $ $ $ 0 0 0 0 0
Transcribed Image Text:MONTGOMERY INCORPORATED Comparative Balance Sheets 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 taxes Income tax expense Net income Cash flows from operating activities $ 78,000 (32,300) 45,700 9,700 12,900 23,100 5,700 $ 17,400 Cash flows from investing activities Current Year Prior Year Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16,500 cash. c. Purchased equipment for cash; no equipment was sold. Changes in current operating assets and liabilities Cash flows from financing activities $ 64,000 18,700 167,600 Cash balance at beginning of year Cash balance at and of year 250,300 92,800 (42,000) $ 301,100 $ 44,700 800 45,500 216,400 39,200 $ 301,100. 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. $ 64,600 23,100 133,500 221,200 79,000 (29,100) $ 271,100 $ 48,400 1,000 49,400 Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash 199,900 21,800 $ 271,100 MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 $ $ $ $ $ 0 0 0 0 0
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