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Debits > Credits > Cash Accounts receivable Credits by: Debits by: $ 86,700 171,000 $ 84,800 4,800 107,000 Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities 92,000 318,000 65,400 48,700 5,400

Debits > Credits > Cash Accounts receivable Credits by: Debits by: $ 86,700 171,000 $ 84,800 4,800 107,000 Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities 92,000 318,000 65,400 48,700 5,400

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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What is the statement of cash flows using the indirect method?

Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Debits > Credits > Credits by: Debits by: $ 86,700 171,000 Cash Accounts receivable $ 84,800 4,800 107,000 Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable 92,000 318,000 65,400 48,700 5,400 9,400 407,000 Common stock 129,000 Retained earnings 75,000 $802,100 $802,100 The following additional information is available about last year's activities: a. Net income for the year was $2 b. The company sold equipment during the year for $35,700. The equipment originally cost $160,300 and it had $126,200 in accumulated depreciation at the time of sale. c. Cash dividends of $10,200 were declared and paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: Beginning Ending $2,877,000 $3,195,000 Accumulated depreciation$ 982,100 $1,047,500 Plant and equipment e. The balance in the Cash account at the beginning of the year was $109,100; the balance at the end of the year was f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
Transcribed Image Text:Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Debits > Credits > Credits by: Debits by: $ 86,700 171,000 Cash Accounts receivable $ 84,800 4,800 107,000 Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable 92,000 318,000 65,400 48,700 5,400 9,400 407,000 Common stock 129,000 Retained earnings 75,000 $802,100 $802,100 The following additional information is available about last year's activities: a. Net income for the year was $2 b. The company sold equipment during the year for $35,700. The equipment originally cost $160,300 and it had $126,200 in accumulated depreciation at the time of sale. c. Cash dividends of $10,200 were declared and paid during the year. d. The beginning and ending balances in the Plant and Equipment and Accumulated Depreciation accounts are given below: Beginning Ending $2,877,000 $3,195,000 Accumulated depreciation$ 982,100 $1,047,500 Plant and equipment e. The balance in the Cash account at the beginning of the year was $109,100; the balance at the end of the year was f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
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