E12-24 (Algo) (Supplement C) Preparing a Statement of Cash Flows, Indirect Method: T-Account MethodGolfGear & More, Inc., Is a reglonal and online golf equipment retaller. The company reported the following for the current year:Purchased a long-term Investment for cash, $22,800.Pald cash dividend, $13,300.Sold equipment for $12,500 cash (cost, $34,000, accumulated depreciation, $21,500).Issued shares of no-par stock, 600 shares at $10 per share cash.Net income was $26,700.Depreciation expense was $4300.Its comparative balance sheet is presented below.Balances12/31/Current 12/31/PriorDalancesYearYear25,70035,0074,500Cash23,10035,00082,80022,80087,000(16,100)234,600$ 15,3002,8007,10067,000Accounta receivableMerchandise inventoryInvestmentsEquipnentAccumulated depreciation121,000(33,300)222,900$23,5005,1004,30067,000TotalAccounts payableWagen payableIncome taxes payableNotes payableCommon atock and additionalpaid-in capitalRetained earnings106,000100,00036,400$234.60023,000$222,900TotalRequired:1. Complete a T-account worksheet.CashOperating15,300 Accounts payable2,800 Wages payable8,300 nventoryNet income26,700Depreciation expense4,300Income taxes payable7,100Net cash provided by operating activities11,700InvestingSale of equipmentPurchase investmentO Net cash used in investing activitiesFinancingProceeds from stock issuancePayment of dividendsONet cash used in financing activitiesNet decrease in cash and cash equivalents2. Based on the T-account worksheet, prepare the statement of cash flows for the current year in proper format. (List cash outflows asnegative amounts.)GOLFGEAR & MORE, INC.Statemont of Cash FlowsFor the Year Endod Docember 31, Current YearCash flows from operating activites:Net incormeDepreciation expenseChanges in current assets and current liabilitiesIncome taxes payableAccounts payableWages payableInventoryCash flows provided by operating activitiesCash flows from investing activities:Proceeds from sale of equipmentPurchase of investmentCash flows provided by investing activitiesCash fows from financing activities:Issuance of common stock

Net Income = $26700 Depreciation = $ 4300 Cash Dividend = $ 13300

E12-24 (Algo) (Supplement C) Preparing a Statement of Cash Flows, Indirect Method: T-Account Method GolfGear & More, Inc., Is a reglonal and online golf equipment retaller. The company reported the following for the current year: Purchased a long-term Investment for cash, $22,800. Pald cash dividend, $13,300. Sold equipment for $12,500 cash (cost, $34,000, accumulated depreciation, $21,500). Issued shares of no-par stock, G00 shares at $10 per share cash. Net income was $26,700. Depreclation expense was $4,300. Its comparative balance sheet is presented below. Balances 12/31/Current 12/31/Peior Dalances Year Year 25,700 35,000 74,500 Caah 23,100 35,000 02,800 22,800 87,000 (16,100) 234,600 $ 15,300 2,800 7,100 67,000 Accounta receivable Merchandiee inventory Inventments Equipnent Aeeumulated depreeiation 121,000 (33,300) 222,900 $23,500 5,100 4,300 67,000 Total Accounte payable Wagen payable Income taxes payable Notes payable Common atock and addinional 106,000 100,000 paid-in capital Retained earninga Total 36,400 $234,600 23,000 $222,900

E12-24 (Algo) (Supplement C) Preparing a Statement of Cash Flows, Indirect Method: T-Account Method GolfGear & More, Inc., Is a reglonal and online golf equipment retaller. The company reported the following for the current year: Purchased a long-term Investment for cash, $22,800. Pald cash dividend, $13,300. Sold equipment for $12,500 cash (cost, $34,000, accumulated depreciation, $21,500). Issued shares of no-par stock, G00 shares at $10 per share cash. Net income was $26,700. Depreclation expense was $4,300. Its comparative balance sheet is presented below. Balances 12/31/Current 12/31/Peior Dalances Year Year 25,700 35,000 74,500 Caah 23,100 35,000 02,800 22,800 87,000 (16,100) 234,600 $ 15,300 2,800 7,100 67,000 Accounta receivable Merchandiee inventory Inventments Equipnent Aeeumulated depreeiation 121,000 (33,300) 222,900 $23,500 5,100 4,300 67,000 Total Accounte payable Wagen payable Income taxes payable Notes payable Common atock and addinional 106,000 100,000 paid-in capital Retained earninga Total 36,400 $234,600 23,000 $222,900

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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