Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income ther Information (796,138) 701,862 (24,300) (26,380) (252,800) (256,420) $ 141,962 Purchased land for $114,600. Purchased new equipment for $97,000. Sold old equipment that cost $133,190 with accumulated depreciation of $114,890 for $18,300 cash. Issued common stock for $46,000. equired repare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows hould be indicated by a minus sign.) CAMPBELL CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2
Cost of goods sold Gross profit Operating expenses Depreciation expense Rent expense Salaries expense Other operating expenses Net income ther Information (796,138) 701,862 (24,300) (26,380) (252,800) (256,420) $ 141,962 Purchased land for $114,600. Purchased new equipment for $97,000. Sold old equipment that cost $133,190 with accumulated depreciation of $114,890 for $18,300 cash. Issued common stock for $46,000. equired repare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows hould be indicated by a minus sign.) CAMPBELL CORPORATION Statement of Cash Flows For the Year Ended December 31, Year 2
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PB
Related questions
Question
![Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method
LO 14-1, 14-3, 14-4
The comparative balance sheets and an income statement for Campbell Corporation follow:
Balance Sheets
As of December 31
Year 2
Assets
Cash
Accounts receivable
Merchandise
inventory
Prepaid rent
Equipment
Accumulated
depreciation
Land
Total assets
Liabilities
Accounts payable
(inventory)
Salaries payable
Stockholders' equity
Common stock, $50
par value
Retained earnings
Total liabilities and
equity
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Rent expense
Salaries expense
Other operating
expenses
Net income
$ 64,333
30,436
157,856
2,375
249, 200
Other Information
(149,080)
195,520
$ 550,640
$ 61,755
34, 183
244,500
210, 202
$ 550, 640
Year 1
$ 38,740
22,320
Income Statement
For the Year Ended December 31, Year
2
173, 640
4,750
285,390
(239, 670)
80,920
$366,090
198,500
68,240
$366,090
$1,498,000
(796, 138)
701,862
Cash flows from operating activities:
70,050
29,300
(24,300)
(26,380)
(252,800)
(256,420)
$ 141,962
1. Purchased land for $114,600.
2. Purchased new equipment for $97,000.
3. Sold old equipment that cost $133,190 with accumulated depreciation of $114,890 for $18,300 cash.
4. Issued common stock for $46,000.
Required
Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows
should be indicated by a minus sign.)
CAMPBELL CORPORATION
Statement of Cash Flows
For the Year Ended December 31, Year 2
Add: Decrease in current assets and Increases in
current liabilities:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4100da26-36bd-43a6-aafd-ee8e0ffe886a%2F4d5cfc68-e200-41e3-8996-2109e0971cc6%2F8awyxak_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 14-19A (Algo) Using financial statements to prepare a statement of cash flows-indirect method
LO 14-1, 14-3, 14-4
The comparative balance sheets and an income statement for Campbell Corporation follow:
Balance Sheets
As of December 31
Year 2
Assets
Cash
Accounts receivable
Merchandise
inventory
Prepaid rent
Equipment
Accumulated
depreciation
Land
Total assets
Liabilities
Accounts payable
(inventory)
Salaries payable
Stockholders' equity
Common stock, $50
par value
Retained earnings
Total liabilities and
equity
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Rent expense
Salaries expense
Other operating
expenses
Net income
$ 64,333
30,436
157,856
2,375
249, 200
Other Information
(149,080)
195,520
$ 550,640
$ 61,755
34, 183
244,500
210, 202
$ 550, 640
Year 1
$ 38,740
22,320
Income Statement
For the Year Ended December 31, Year
2
173, 640
4,750
285,390
(239, 670)
80,920
$366,090
198,500
68,240
$366,090
$1,498,000
(796, 138)
701,862
Cash flows from operating activities:
70,050
29,300
(24,300)
(26,380)
(252,800)
(256,420)
$ 141,962
1. Purchased land for $114,600.
2. Purchased new equipment for $97,000.
3. Sold old equipment that cost $133,190 with accumulated depreciation of $114,890 for $18,300 cash.
4. Issued common stock for $46,000.
Required
Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows
should be indicated by a minus sign.)
CAMPBELL CORPORATION
Statement of Cash Flows
For the Year Ended December 31, Year 2
Add: Decrease in current assets and Increases in
current liabilities:
![Income Statement
For the Year Ended December 31, Year
2
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Rent expense
Salaries expense
Other operating
expenses
Net income
Other Information
$1,498,000
(796, 138)
701, 862
1. Purchased land for $114,600.
2. Purchased new equipment for $97,000.
3. Sold old equipment that cost $133,190 with accumulated depreciation of $114,890 for $18,300 cash.
4. Issued common stock for $46,000.
(24,300)
(26,380)
(252,800)
(256,420)
$ 141,962
Required
Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows
should be indicated by a minus sign.)
CAMPBELL CORPORATION
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities:
Add: Decrease in current assets and Increases in
current liabilities:
Plus: Noncash charges
Less: Increases in current assets and Decreases in
current liabilities:
Cash flows from investing activities:
Ending cash balance
Cash flows from financing activities:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4100da26-36bd-43a6-aafd-ee8e0ffe886a%2F4d5cfc68-e200-41e3-8996-2109e0971cc6%2F1z36ycn_processed.png&w=3840&q=75)
Transcribed Image Text:Income Statement
For the Year Ended December 31, Year
2
Sales
Cost of goods sold
Gross profit
Operating expenses
Depreciation expense
Rent expense
Salaries expense
Other operating
expenses
Net income
Other Information
$1,498,000
(796, 138)
701, 862
1. Purchased land for $114,600.
2. Purchased new equipment for $97,000.
3. Sold old equipment that cost $133,190 with accumulated depreciation of $114,890 for $18,300 cash.
4. Issued common stock for $46,000.
(24,300)
(26,380)
(252,800)
(256,420)
$ 141,962
Required
Prepare the statement of cash flows for 2017 using the indirect method. (Amounts to be deducted and cash outflows
should be indicated by a minus sign.)
CAMPBELL CORPORATION
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities:
Add: Decrease in current assets and Increases in
current liabilities:
Plus: Noncash charges
Less: Increases in current assets and Decreases in
current liabilities:
Cash flows from investing activities:
Ending cash balance
Cash flows from financing activities:
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