Exercise 11-8 (Algo) Prepare a statement of cash flows-indirect method (LO11-3, 11-4, 11-5) The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Land Equipment Accumulated reciat Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 2024 $115,000 79,600 99,000 4,800 500,000 806,000 (432,000) $1,172,400 $103,000 6,600 8,800 110,000 720,000 224,000 $1,172,400 Additional Information for 2024: 1. Net income is $73,000. 2. The company purchases $116,000 in equipment. No equipment was sold. 3. Depreciation expense is $156,000. 4. The company repays $110,000 in notes payable. 5. The company declares and pays a cash dividend of $27,000. 2023 $131,200 94,000 83,600 2,400 500,000 690,000 (276,000) $1,225,200 $88,600 13,200 5,400 220,000 720,000 178,000 $1,225,200 Required: Prepare the statement of cash flows using the indirect method. (Amounts to be deducted, cash outflows, and any decrease in c should be indicated with a minus sign.)
Exercise 11-8 (Algo) Prepare a statement of cash flows-indirect method (LO11-3, 11-4, 11-5) The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2024 and 2023 Assets Current assets: Cash Accounts receivable Inventory Prepaid rent Long-term assets: Land Equipment Accumulated reciat Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 2024 $115,000 79,600 99,000 4,800 500,000 806,000 (432,000) $1,172,400 $103,000 6,600 8,800 110,000 720,000 224,000 $1,172,400 Additional Information for 2024: 1. Net income is $73,000. 2. The company purchases $116,000 in equipment. No equipment was sold. 3. Depreciation expense is $156,000. 4. The company repays $110,000 in notes payable. 5. The company declares and pays a cash dividend of $27,000. 2023 $131,200 94,000 83,600 2,400 500,000 690,000 (276,000) $1,225,200 $88,600 13,200 5,400 220,000 720,000 178,000 $1,225,200 Required: Prepare the statement of cash flows using the indirect method. (Amounts to be deducted, cash outflows, and any decrease in c should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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