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Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $60,950. b. Paid $16,020 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $830 were declared and paid. Current Year Prior Year $ 66,200 $70,850 19,750 25,950 214,150 (63,400) $ 267,300 $13,500 4.500 60,180 104,200 84,920 $ 267,300 $ 213,000 110,000 15,450 44,800 $ 42,750 e. Other expenses all relate to wages. 1. Accounts payable includes only inventory purchases made on credit. 25,950 20,800 153,200 (47,950) $ 218,200 $ 23,000 7,400 76,200 67,800 43,000 $ 218,200 Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts.

Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $60,950. b. Paid $16,020 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $830 were declared and paid. Current Year Prior Year $ 66,200 $70,850 19,750 25,950 214,150 (63,400) $ 267,300 $13,500 4.500 60,180 104,200 84,920 $ 267,300 $ 213,000 110,000 15,450 44,800 $ 42,750 e. Other expenses all relate to wages. 1. Accounts payable includes only inventory purchases made on credit. 25,950 20,800 153,200 (47,950) $ 218,200 $ 23,000 7,400 76,200 67,800 43,000 $ 218,200 Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts.

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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Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term . Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $60,950. b. Paid $16,020 on the long-term note payable. c. Issued new shares of stock for $36,400 cash.. Current Year Prior Year $70,850 19,750 25,950 214,150 (63,400) $ 267,300 $13,500 4,500 60,180 104,200 84,920 $ 267,300 $ 213,000 110,000 15,450 44,800 $42,750 d. Dividends of $830 were declared and paid. e. Other expenses all relate to wages. 1. Accounts payable includes only inventory purchases made on credit. $ 66,200 25,950 20,800 153,200 (47,950) $ 218,200 $ 23,000 7,400 76,200 67,800 43,000 $218,200 Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts. *** Alaut Check my work
Transcribed Image Text:Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term . Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: a. Bought equipment for cash, $60,950. b. Paid $16,020 on the long-term note payable. c. Issued new shares of stock for $36,400 cash.. Current Year Prior Year $70,850 19,750 25,950 214,150 (63,400) $ 267,300 $13,500 4,500 60,180 104,200 84,920 $ 267,300 $ 213,000 110,000 15,450 44,800 $42,750 d. Dividends of $830 were declared and paid. e. Other expenses all relate to wages. 1. Accounts payable includes only inventory purchases made on credit. $ 66,200 25,950 20,800 153,200 (47,950) $ 218,200 $ 23,000 7,400 76,200 67,800 43,000 $218,200 Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts. *** Alaut Check my work
SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities:
Transcribed Image Text:SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities:
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