Hagag Company uses the indirect methodto prepare its statement of cash flows. Pleaserefer to the following sections ofthe 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 stated with brackets or with the minus sign): 2013 $ 6,000 1,000 90,000 $97,000 2014 Increase/decrease Accounts payable Accrued liabilities Long-term notes payable $ 4,000 2,000 84,000 $ 90,000 Total liabilities Common stock Retained earnings Treasury stock Total equity 30,000 113,000 (8,000) $135,000 2,000 74,000 (5,000) $71,000 Total liabilities and equity $225,000 $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. Netincome for the year was $49,000. From the info presented above, prepare the financingsection ofthe statement of cash flows using the following format: Financing activities: Issuance of stock Purchase oftreasury stock Sale oftreasury stock Borrowing on notes payable Repayments of notes payable Payment of dividends Net cash from financing activities
Hagag Company uses the indirect methodto prepare its statement of cash flows. Pleaserefer to the following sections ofthe 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 stated with brackets or with the minus sign): 2013 $ 6,000 1,000 90,000 $97,000 2014 Increase/decrease Accounts payable Accrued liabilities Long-term notes payable $ 4,000 2,000 84,000 $ 90,000 Total liabilities Common stock Retained earnings Treasury stock Total equity 30,000 113,000 (8,000) $135,000 2,000 74,000 (5,000) $71,000 Total liabilities and equity $225,000 $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. Netincome for the year was $49,000. From the info presented above, prepare the financingsection ofthe statement of cash flows using the following format: Financing activities: Issuance of stock Purchase oftreasury stock Sale oftreasury stock Borrowing on notes payable Repayments of notes payable Payment of dividends Net cash from financing activities
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.2P
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Transcribed Image Text:Hagag Company uses the indirect methodto prepare its statement of cash flows.
Pleaserefer to the following sections ofthe 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 stated with brackets or with the minus sign):
2013
$ 6,000
1,000
90,000
$97,000
2014
Increase/decrease
Accounts payable
Accrued liabilities
Long-term notes payable
$ 4,000
2,000
84,000
$ 90,000
Total liabilities
Common stock
Retained earnings
Treasury stock
Total equity
30,000
113,000
(8,000)
$135,000
2,000
74,000
(5,000)
$71,000
Total liabilities and equity $225,000
$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.
Netincome for the year was $49,000.
From the info presented above, prepare the financingsection ofthe statement of cash
flows using the following format:
Financing activities:
Issuance of stock
Purchase oftreasury stock
Sale oftreasury stock
Borrowing on notes payable
Repayments of notes payable
Payment of dividends
Net cash from financing activities
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