Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below. Cash Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings COMPARATIVE BALANCE SHEETS 12/31/25 Sales revenue $608000 (320000) $408000 360000 384000 $960000 288000 (304000) $1440000 $176000 352000 360000 216000 336000 $1440000 INCOME STATEMENT For the Year Ended December 31, 2025 12/31/24 $8400000 $192000 216000 480000 656000 $1544000 $96000 392000 600000 216000 240000 $1544000
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- Use the following information from Isthmus Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.Use the following information from Dubuque Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.Use the following information from Berlin Companys financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018.
- Bramble Corp. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Bramble Corp. for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Sales revenue Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income INCOME STATEMENT For the Year Ended December 31, 2022 BALANCE SHEETS $607000 (321000) The following additional data were provided: $138000. $60000. O $99000. O $39000. 12/31/22 $408000 358000 $1435000 193000 383000 $598000 286000 $ 177000 354000 362000 $1435000 189000 353000 $961000 (302000) $8410000 7151000 1259000 791000 468000 72000 396000 99000 $297000 12/31/21 $193000 218000 482000 659000…Bramble Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Cash Accounts receivable Inventory Equity investments Buildings Equipment Copyrights Totals Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-buildings Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings 1. 2. Additional data related to 2025 are as follows. 3. 4. 5. 6. 7. December 31 2025 $38,800 12,200 11,900 -0- -0- 39,900 5,000 $107,800 $3,000 1,900 -0- 5,000 -0- 2,900 36,000 38,000 21,000 $107,800 2024 $12,800 9,900 10,000 3,000 30,000 19,900 5,300 $90,900 $4,400 4,500 5,900 3,900 5,000 4,100 25,000 33,000 5,100 $90,900 Equipment that had cost $11,100 and was 30% depreciated at time of disposal was sold for $2,500. $5,000 of the long-term note payable was paid by issuing common stock. Cash dividends paid were $5,000. On January 1,…Harlan Mining Co. has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements for 2025 are provided below. Cash COMPARATIVE BALANCE SHEETS Accounts receivable Inventory Property, plant, and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings 12/31/25 $608000 (320000) $408000 360000 384000 288000 $1440000 $176000 352000 360000 216000 336000 $1440000 12/31/24 $960000 (304000) $192000 216000 480000 656000 $1544000 $96000 392000 600000 216000 240000 $1544000
- Assessment task:Part AReview the existing literature to critically examine the relative information content of theincome statement and the statement of cash flows. Why do investors find both incomestatement and statement of cash flows useful?Part BDownload the annual financial reports of BHP Ltd, Santos Ltd, and Funtastic Ltd for the year2019, 2018 and 2017. Examine the consolidated Cash Flow Statements for each companiesacross three years. Answer the following questions about each of the three cash-flowstatements.1. For each companies [except mentioned otherwise as in c), g) and i) below], across threeyears on the Statement of Cash Flows discuss:a) What are the major sources of cash for each firm? What are the major uses ofcash for each firm?b) What was the trend in cash flow from (continuing) operations for each firm?c) Compare and contrast the cash flow from operations with the net profit after taxin income statement. Explain in detail the major reasons for the differencebetween…Part AReview the existing literature to critically examine the relative information content of theincome statement and the statement of cash flows. Why do investors find both incomestatement and statement of cash flows useful? Part BDownload the annual financial reports of BHP Ltd, Santos Ltd, and Funtastic Ltd for the year2019, 2018 and 2017. Examine the consolidated Cash Flow Statements for each companiesacross three years. Answer the following questions about each of the three cash-flowstatements.1. For each companies [except mentioned otherwise as in c), g) and i) below], across threeyears on the Statement of Cash Flows discuss:a) What are the major sources of cash for each firm? What are the major uses ofcash for each firm?b) What was the trend in cash flow from (continuing) operations for each firm?c) Compare and contrast the cash flow from operations with the net profit after taxin income statement. Explain in detail the major reasons for the differencebetween these two figures.…Vaughn Manufacturing has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Vaughn Manufacturing for 2022 and 2021 are provided below. Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings BALANCE SHEETS $609000 (318000) 12/31/22 $407000 361000 383000 291000 $1442000 $ 175000 353000 360000 221750 332250 $1442000 $962000 (306000) 12/31/21 $191000 218000 478000 656000 $1543000 $98000 394000 600000 215000 236000 $1543000
- 1. Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2020 statement of cash flows. Code Letter Effect A Added to net income in the operating section D Deducted from net income in the operating section R-I Cash receipt in investing section P-I Cash payment in investing section R-F Cash receipt in financing section P-F Cash payment in financing section N Noncash investing and financing activity (a) Purchase of land and building. select a code letter (b) Decrease in accounts receivable. select a code letter (c) Issuance of stock. select a code letter…1. Your answer is partially correct. Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2020 statement of cash flows. Code Letter Effect A Added to net income in the operating section D Deducted from net income in the operating section R-I Cash receipt in investing section P-I Cash payment in investing section R-F Cash receipt in financing section P-F Cash payment in financing section N Noncash investing and financing activity (a) Purchase of land and building. select a code letter (b) Decrease in accounts receivable. select a code letter (c) Issuance of stock. select a code letter…Problem 4: Following are the comparative statements of financial position of CPA Company to add in preparing a statement of cash flows: ● CPA Company Statement of Financial Position December 31, 2021 and 2020 Assets Cash and cash equivalents Financial assets at FVPL Accounts receivable Inventory Long-term investments Property, plant and equipment Less: accumulated depreciation Patents Less: accumulated amortization Total assets Liabilities and Equity Accounts payable Income tax payable 12% bonds payable Less: discount on bonds payable Ordinary share capital Retained earnings The following events took place in 2021: 2021 P900,000 2020 P620,000 300,000 400,000 1,956,500 1,445,000 3,050,000 3,200,000 1,000,000 1,250,000 9,000,000 8,000,000 (2,200,000) (2,000,000) 600,000 600,000 (100,000) P14,606,500 P13,415,000 P2,200,000 P1,900,000 34,500 45,000 4,000,000 4,000,000 (250,000) (300,000) 7,500,000 6,500,000 1,122,000 1,270,000 P14,606,500 P13,415,000 CPA Company declared and paid cash…