Hagag Company uses the indirect method to prepare its statement of cash flows. Please refer to the following sections of the company's comparative balance sheet and complete the fourth column to show the increase or decrease for each item listed. Please use the correct sign for each item to gain the full mark assigned (for example if the figure is negative, this must be clearly recorded with brackets or with the minus sign ie (240o00) or -24000 Increase (+) /decrease (-) 2014 $ 4,000 2,000 84,000 $ 90,000 $97,000 2013 $ 6,000 Accounts payable Accrued liabilities Long-term notes payable Total liabilities 1,000 90,000 Common stock Retained earnings Treasury stock Total equity 30,000 2,000 74,000 (5,000) |$135,000 $ 71,000 113,000 (8,000) Total liabilities and equity $225,0o0 $168,000 The company also provided the following additional information: No stock was retired. No treasury stock was sold. During 2014, the company repaid $40,000 of long-term notes payable. During 2014, the company borrowed $34,000 on a new note payable. Net income for the year was $49,00o. From the info presented above, prepare the financing section of the statement of cash flows using the following format: Financing activities: Issuance of stock Purchase of treasury stock Sale of treasury stock Borrowing on notes payable Repayments of notes payable Payment of dividends Net cash from financing activities
Hagag Company uses the indirect method to prepare its statement of cash flows. Please refer to the following sections of the company's comparative balance sheet and complete the fourth column to show the increase or decrease for each item listed. Please use the correct sign for each item to gain the full mark assigned (for example if the figure is negative, this must be clearly recorded with brackets or with the minus sign ie (240o00) or -24000 Increase (+) /decrease (-) 2014 $ 4,000 2,000 84,000 $ 90,000 $97,000 2013 $ 6,000 Accounts payable Accrued liabilities Long-term notes payable Total liabilities 1,000 90,000 Common stock Retained earnings Treasury stock Total equity 30,000 2,000 74,000 (5,000) |$135,000 $ 71,000 113,000 (8,000) Total liabilities and equity $225,0o0 $168,000 The company also provided the following additional information: No stock was retired. No treasury stock was sold. During 2014, the company repaid $40,000 of long-term notes payable. During 2014, the company borrowed $34,000 on a new note payable. Net income for the year was $49,00o. From the info presented above, prepare the financing section of the statement of cash flows using the following format: Financing activities: Issuance of stock Purchase of treasury stock Sale of treasury stock Borrowing on notes payable Repayments of notes payable Payment of dividends Net cash from financing activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hagag Company uses the indirect method to prepare its statement
of cash flows.
Please refer to the following sections of the company's comparative
balance sheet and complete the fourth column to show the
increase or decrease for each item listed.
Please use the correct sign for each item to gain the full mark assigned
(for example if the figure is negative, this must be clearly recorded with brackets or with
the minus sign ie (240o00) or -24000
Increase (+)
/decrease (-)
2014
$ 4,000
2,000
84,000
$ 90,000 $97,000
2013
$ 6,000
Accounts payable
Accrued liabilities
Long-term notes payable
Total liabilities
1,000
90,000
Common stock
Retained earnings
Treasury stock
Total equity
30,000
2,000
74,000
(5,000)
|$135,000 $ 71,000
113,000
(8,000)
Total liabilities and equity $225,0o0 $168,000
The company also provided the following additional information:
No stock was retired.
No treasury stock was sold.
During 2014, the company repaid $40,000 of long-term notes payable.
During 2014, the company borrowed $34,000 on a new note payable.
Net income for the year was $49,00o.
Transcribed Image Text:From the info presented above, prepare the financing section of the statement of cash
flows using the following format:
Financing activities:
Issuance of stock
Purchase of treasury stock
Sale of treasury stock
Borrowing on notes payable
Repayments of notes payable
Payment of dividends
Net cash from financing activities
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