Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock. Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $9,700. b. Paid $11,000 on the long-term notes payable. c. Issued new shares of stock for $23,500 cash. d. Declared and paid a $4,500 cash dividend. $ 52,030 33,300 $ 21,500 36,000 36,300 118,700 (40,200) $ 200,130 $ 29,200 -730 43,000 109,000 (33,500) $ 176,000 $ 25,500 1,000 44,000 55,000 90,500 67,000 35,700 27,500 $176,000 $ 200,130 $ 107,000 64,500 29,800 $ 12,700 e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should with a minus sign.)
Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock. Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $9,700. b. Paid $11,000 on the long-term notes payable. c. Issued new shares of stock for $23,500 cash. d. Declared and paid a $4,500 cash dividend. $ 52,030 33,300 $ 21,500 36,000 36,300 118,700 (40,200) $ 200,130 $ 29,200 -730 43,000 109,000 (33,500) $ 176,000 $ 25,500 1,000 44,000 55,000 90,500 67,000 35,700 27,500 $176,000 $ 200,130 $ 107,000 64,500 29,800 $ 12,700 e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement
of cash flows. The completed comparative balance sheets and income statement are summarized:
Current Year Prior Year
Balance Sheet at December 31
Cash
Accounts Receivable
Inventory
Equipment
Accumulated Depreciation-Equipment
Total Assets
Accounts Payable
Salaries and Wages Payable
Notes Payable (long-term)
Common Stock.
Retained Earnings
Total Liabilities and Stockholders' Equity
Income Statement (current year)
Sales Revenue
Cost of Goods Sold
Other Expenses
Net Income
Additional Data:
a. Bought equipment for cash, $9,700.
b. Paid $11,000 on the long-term notes payable.
c. Issued new shares of stock for $23,500 cash.
d. Declared and paid a $4,500 cash dividend.
$ 52,030
33,300
$ 21,500
36,000
36,300
118,700
(40,200)
$ 200,130
$ 29,200
-730
43,000
109,000
(33,500)
$ 176,000
$ 25,500
1,000
44,000
55,000
90,500
67,000
35,700
27,500
$176,000
$ 200,130
$ 107,000
64,500
29,800
$ 12,700
e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700.
f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or
other expenses, assume that these expenses were fully paid in cash.
Required:
1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should
with a minus sign.)
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