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Hought Office Machines, Inc.'s accountants assembled the following selected data for the year ended December 31, 2018: E (Click the icon to view the current accounts.) E (Click the icon to view the transaction data.) Requirement 1. Prepare Hought Office Machines, Inc.'s statement of cash flows using the indirect method to report operating activities. List noncash investing and financing activities on an accompanying schedule. Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted.) Hought Office Machines, Inc. Data Table Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Transaction Data for 2018: Net income Net income. ..... $ 60,000 Adjustments to reconcile net income to net cash Purchase of treasury stock. 14.300 provided by (used for) operating activities: Issuance of common stock for cash. 36,600 Loss on sale of equipment. 6.000 Payment of cash dividends 18,500 Depreciation expense. 21,100 Issuance of long-term note payable in exchange for cash 39,000 Purchase of building for cash....... 123,000 Retirement of bonds payable by issuing common stock 63,000 Net cash provided by (used for) operating activities Sale of equipment for cash. ............................. 51,000 Cash flows from investing activities: Print Done Net cash provided by (used for) investing activities Cash flows from financing activities: Data Table Net cash provided by (used for) financing activities Hought Office Machines, Inc. Net increase (decrease) in cash: December 31 2018 2017 Current assets: Cash balance, December 31, 2017 Cash and cash equivalents . .... S 86,200 S 29,000 Cash balance, December 31, 2018 Accounts receivable 69,300 64,200 Inventory 79,100 83,600 Noncash investing and financing activities: Current liabilities: Accounts payable 58,400 $ 56,000 Income tax payable . . . . ..... 14,300 16,800 Print Done

Hought Office Machines, Inc.'s accountants assembled the following selected data for the year ended December 31, 2018: E (Click the icon to view the current accounts.) E (Click the icon to view the transaction data.) Requirement 1. Prepare Hought Office Machines, Inc.'s statement of cash flows using the indirect method to report operating activities. List noncash investing and financing activities on an accompanying schedule. Complete the statement one section at a time, beginning with the cash flows from operating activities. (Use parentheses or a minus sign for numbers to be subtracted.) Hought Office Machines, Inc. Data Table Statement of Cash Flows Year Ended December 31, 2018 Cash flows from operating activities: Transaction Data for 2018: Net income Net income. ..... $ 60,000 Adjustments to reconcile net income to net cash Purchase of treasury stock. 14.300 provided by (used for) operating activities: Issuance of common stock for cash. 36,600 Loss on sale of equipment. 6.000 Payment of cash dividends 18,500 Depreciation expense. 21,100 Issuance of long-term note payable in exchange for cash 39,000 Purchase of building for cash....... 123,000 Retirement of bonds payable by issuing common stock 63,000 Net cash provided by (used for) operating activities Sale of equipment for cash. ............................. 51,000 Cash flows from investing activities: Print Done Net cash provided by (used for) investing activities Cash flows from financing activities: Data Table Net cash provided by (used for) financing activities Hought Office Machines, Inc. Net increase (decrease) in cash: December 31 2018 2017 Current assets: Cash balance, December 31, 2017 Cash and cash equivalents . .... S 86,200 S 29,000 Cash balance, December 31, 2018 Accounts receivable 69,300 64,200 Inventory 79,100 83,600 Noncash investing and financing activities: Current liabilities: Accounts payable 58,400 $ 56,000 Income tax payable . . . . ..... 14,300 16,800 Print Done

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Hought Office Machines, Inc. Statement of Cash Flows Overview** Hought Office Machines, Inc.'s accountants have compiled selected data for the year ending December 31, 2018. The company is required to prepare a statement of cash flows using the indirect method to report operating activities. This document provides a detailed view of cash flows from operating, investing, and financing activities, including any noncash investing and financing activities. **Components of the Statement of Cash Flows:** 1. **Cash Flows from Operating Activities:** - Net Income: $60,000 - Adjustments to reconcile net income to net cash provided by operating activities: - Depreciation Expense: $21,100 - Loss on Sale of Equipment: $6,000 - Changes in working capital accounts: - Accounts Receivable: Increase of $5,100 (from $64,200 in 2017 to $69,300 in 2018) - Inventory: Decrease of $4,400 (from $83,600 in 2017 to $79,100 in 2018) - Accounts Payable: Increase of $2,800 (from $56,000 in 2017 to $58,800 in 2018) - Income Tax Payable: Decrease of $1,800 (from $16,800 in 2017 to $14,300 in 2018) 2. **Cash Flows from Investing Activities:** - Purchase of Building for Cash: ($123,000) - Sale of Equipment for Cash: $51,000 3. **Cash Flows from Financing Activities:** - Purchase of Treasury Stock: ($14,300) - Issuance of Common Stock for Cash: $36,600 - Payment of Cash Dividends: ($15,800) - Retirement of Bonds Payable by Issuing Common Stock (noncash): $63,000 - Issuance of Long-Term Note Payable in Exchange for Cash: $39,000 **Summary of Cash Balance Changes:** - Cash balance at the beginning of the year (December 31, 2017): $29,000 - Cash balance at the end of the year (December 31, 2018): $86,200 **Noncash Investing and Financing Activities:** - Retirement of bonds payable by issuing common
Transcribed Image Text:**Hought Office Machines, Inc. Statement of Cash Flows Overview** Hought Office Machines, Inc.'s accountants have compiled selected data for the year ending December 31, 2018. The company is required to prepare a statement of cash flows using the indirect method to report operating activities. This document provides a detailed view of cash flows from operating, investing, and financing activities, including any noncash investing and financing activities. **Components of the Statement of Cash Flows:** 1. **Cash Flows from Operating Activities:** - Net Income: $60,000 - Adjustments to reconcile net income to net cash provided by operating activities: - Depreciation Expense: $21,100 - Loss on Sale of Equipment: $6,000 - Changes in working capital accounts: - Accounts Receivable: Increase of $5,100 (from $64,200 in 2017 to $69,300 in 2018) - Inventory: Decrease of $4,400 (from $83,600 in 2017 to $79,100 in 2018) - Accounts Payable: Increase of $2,800 (from $56,000 in 2017 to $58,800 in 2018) - Income Tax Payable: Decrease of $1,800 (from $16,800 in 2017 to $14,300 in 2018) 2. **Cash Flows from Investing Activities:** - Purchase of Building for Cash: ($123,000) - Sale of Equipment for Cash: $51,000 3. **Cash Flows from Financing Activities:** - Purchase of Treasury Stock: ($14,300) - Issuance of Common Stock for Cash: $36,600 - Payment of Cash Dividends: ($15,800) - Retirement of Bonds Payable by Issuing Common Stock (noncash): $63,000 - Issuance of Long-Term Note Payable in Exchange for Cash: $39,000 **Summary of Cash Balance Changes:** - Cash balance at the beginning of the year (December 31, 2017): $29,000 - Cash balance at the end of the year (December 31, 2018): $86,200 **Noncash Investing and Financing Activities:** - Retirement of bonds payable by issuing common
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