Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information. Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation Nages payable Short-term note payable Common stock Retained earnings Income Statement for Current Tear Service revenue Depreciation expense Salaries expense Other expenses Net income Current Year Cash flows from operating activities: $ 3,300 700 100 350 (50) $4,400 350 300 1,000 2,750 $4,400 Cash flows from investing activities: $ Cash flows from financing activities: $34,000 50 30,000 3,650 300 $ Prior Year $4,000 500 50 0 0 Additional Data a Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 of depreciation expense at the end of the current year. d. At the end of the current year, the company signed a short-term note payable to the bank for $300. $4,550 $1,100 Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) 0 1,000 2,450 $4,550 COMPUTER SERVICE AND REPAIR Statement of Cash Flows For the Year Ended December 31, Current Year Adjustments to reconcile net income to net cash flow from operating activities:
Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information. Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation Nages payable Short-term note payable Common stock Retained earnings Income Statement for Current Tear Service revenue Depreciation expense Salaries expense Other expenses Net income Current Year Cash flows from operating activities: $ 3,300 700 100 350 (50) $4,400 350 300 1,000 2,750 $4,400 Cash flows from investing activities: $ Cash flows from financing activities: $34,000 50 30,000 3,650 300 $ Prior Year $4,000 500 50 0 0 Additional Data a Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 of depreciation expense at the end of the current year. d. At the end of the current year, the company signed a short-term note payable to the bank for $300. $4,550 $1,100 Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) 0 1,000 2,450 $4,550 COMPUTER SERVICE AND REPAIR Statement of Cash Flows For the Year Ended December 31, Current Year Adjustments to reconcile net income to net cash flow from operating activities:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance
sheets and income statement are presented below, along with additional information.
Balance Sheet at December 31
Cash
Accounts receivable
Prepaid expenses
Equipment
Accumulated depreciation
Nages payable
Short-term note payable
Common stock
Retained earnings
Income Statement for Current Tear
Service revenue
Depreciation expense
Salaries expense
Other expenses
Net incone
Current
Year
Cash flows from operating activities:
$ 3,300
700
100
350
(50)
$4,400
$ 350
300
1,000
2,750
$4,400
Cash flows from investing activities:
$34,000
50
30,000
3,650
300
Cash flows from financing activities:
$
Prior
Year
$4,000
500
50
0
0
Additional Data
a Prepaid expenses relate to rent paid in advance.
b. Other expenses were paid in cash.
c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 of depreciation expense at the
end of the current year.
d. At the end of the current year, the company signed a short-term note payable to the bank for $300.
$4,550
$1,100
Required:
Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash
outflows as negative amounts.)
0
1,000
2,450
$4,550
COMPUTER SERVICE AND REPAIR
Statement of Cash Flows
For the Year Ended December 31, Current Year
Adjustments to reconcile net income to net cash flow from operating activities:
0
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