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, $58,050. b. Paid $11,700 on the long-term note payable. c. Issued new shares of stock for $34,400 cash. Current Year SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year $ 66,950 17,450 23,950 211,350 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: (60,900) $258,800 $ 11,000 4,000 62,000 101, 100 80,700 $258,800 d. Dividends of $12,650 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. $203,000 100,000 14,150 43,800 $ 45,050 Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash out negative amounts.) $ Prior Year $ 65,100 23,950 18,900 153,300 (46,750) $214,500 45,050 $ 21,200 4,600 73,700 66,700 48,300 $214,500
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, $58,050. b. Paid $11,700 on the long-term note payable. c. Issued new shares of stock for $34,400 cash. Current Year SHARP SCREEN FILMS, INC. Statement of Cash Flows For the Year Ended December 31, Current Year $ 66,950 17,450 23,950 211,350 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: (60,900) $258,800 $ 11,000 4,000 62,000 101, 100 80,700 $258,800 d. Dividends of $12,650 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. $203,000 100,000 14,150 43,800 $ 45,050 Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash out negative amounts.) $ Prior Year $ 65,100 23,950 18,900 153,300 (46,750) $214,500 45,050 $ 21,200 4,600 73,700 66,700 48,300 $214,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. Prepare the statement of
Transcribed Image Text:Required:
1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as
negative amounts.)
SHARP SCREEN FILMS, INC.
Statement of Cash Flows
For the Year Ended December 31, Current Year
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided
by operating activities:
Cash flows from investing activities:
Cash flows from financing activities:
$
45,050
0
45,050
0
0
0
Transcribed Image Text:Sharp Screen Films, Inc., 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
Current Year
SHARP SCREEN FILMS, INC.
Statement of Cash Flows
For the Year Ended December 31, Current Year
$ 66,950
17,450
23,950
211,350
(60,900)
Cash flows from operating activities:
Net income
Adjustments to reconcile net income to net cash provided
by operating activities:
$258,800
$ 11,000
4,000
62,000
101,100
80,700
$258,800
$203,000
100,000
14,150
Additional Data:
a. Bought equipment for cash, $58,050.
b. Paid $11,700 on the long-term note payable.
c. Issued new shares of stock for $34,400 cash.
d. Dividends of $12,650 were declared and paid.
e. Other expenses all relate to wages.
f. Accounts payable includes only inventory purchases made on credit.
43,800
$ 45,050
Required:
1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as
negative amounts.)
Prior Year
$ 45,050
$ 65,100
23,950
18,900
153,300
(46,750)
$214,500
$ 21,200
4,600
73,700
66,700
48,300
$214,500
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