Chapter 13 Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Ү3 Dec. 31, 20Y2 Assets Cash $224,990 $211,470 Accounts receivable (net) 81,510 75,950 Inventories 230,080 224,860 Investments 87,120 Land 118,020 Equipment 253,860 198,810 Accumulated depreciation-equipment (59,430) (53,610) Total assets $849,030 $744,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $153,670 $146,690 Accrued expenses payable (operating expenses) 15,280 19,360 Dividends payable 8,490 6,700 Common stock, $10 par 45,850 36,490 Paid-in capital: Excess of issue price over par-common stock 172,350 101,270 Retained earnings 453,390 434,090 Total liabilities and stockholders' equity $849,030 $744,600 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $101,930 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $54,300 credit to Retained Earnings for net income. f. There was a $35,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities Changes in current operabing assets and labilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
Chapter 13 Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Ү3 Dec. 31, 20Y2 Assets Cash $224,990 $211,470 Accounts receivable (net) 81,510 75,950 Inventories 230,080 224,860 Investments 87,120 Land 118,020 Equipment 253,860 198,810 Accumulated depreciation-equipment (59,430) (53,610) Total assets $849,030 $744,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $153,670 $146,690 Accrued expenses payable (operating expenses) 15,280 19,360 Dividends payable 8,490 6,700 Common stock, $10 par 45,850 36,490 Paid-in capital: Excess of issue price over par-common stock 172,350 101,270 Retained earnings 453,390 434,090 Total liabilities and stockholders' equity $849,030 $744,600 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $101,930 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $54,300 credit to Retained Earnings for net income. f. There was a $35,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities Changes in current operabing assets and labilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Chapter
13
Statement of Cash Flows-Indirect Method
The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:
Dec. 31, 20Ү3 Dec. 31, 20Y2
Assets
Cash
$224,990
$211,470
Accounts receivable (net)
81,510
75,950
Inventories
230,080
224,860
Investments
87,120
Land
118,020
Equipment
253,860
198,810
Accumulated depreciation-equipment
(59,430)
(53,610)
Total assets
$849,030
$744,600
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)
$153,670
$146,690
Accrued expenses payable (operating expenses)
15,280
19,360
Dividends payable
8,490
6,700
Common stock, $10 par
45,850
36,490
Paid-in capital: Excess of issue price over par-common stock
172,350
101,270
Retained earnings
453,390
434,090
Total liabilities and stockholders' equity
$849,030
$744,600
Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:
a. The investments were sold for $101,930 cash.
b. Equipment and land were acquired for cash.
C. There were no disposals of equipment during the year.
d. The common stock was issued for cash.
e. There was a $54,300 credit to Retained Earnings for net income.
f. There was a $35,000 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating
activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any
negative adjustments.
Livers Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y3
Cash flows from operating activities:
Transcribed Image Text:Adjustments to reconcile net income to net cash flow from operating activities
Changes in current operabing assets and labilities:
Net cash flow from operating activities
Cash flows from investing activities:
Net cash flow used for investing activities
Cash flows from financing activities:
Net cash flow from financing activities
Cash at the beginning of the year
Cash at the end of the year
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