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
Related questions
Question
Subject: Accounting
Transcribed Image Text:PLASMA SCREENS CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2024
Cash Flows from Operating Activities
Adjustments to reconcile net income to net cash
flows from operating activities
Net cash flows from operating activities
Cash Flows from Investing Activities
Net cash flows from investing activities
Cash Flows from Financing Activities
Net cash flows from financing activities
Cash at the beginning of the period
Cash at the end of the period
$
$
0
0
0
Transcribed Image Text: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 depreciation
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 cash
should be indicated with a minus sign.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education