Homework Help is Here – Start Your Trial Now!
Business
Accounting
K The income statement and additional data of Newton Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. 2. Evaluate Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation

K The income statement and additional data of Newton Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. 2. Evaluate Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
icon
Concept explainers
Question

Please answer both reauirements thnx

on tior tion tion tion tion tion tion ion Data Additional data: a. Acquisition of plant assets was $266,666. Of this amount, $213,333 was paid in cash and $53,333 by signing a note payable. b. Proceeds from sale of land totalled $30,667. c. Proceeds from issuance of common share totalled $80,000. d. Payment of long-term note payable was $17,333. e. Payment of dividends was $13,333. f. From the balance sheet Current Assets: Cash Accounts receivable Inventory Prepaid expenses Current Liabilities: Accounts payable Accrued liabilses |$ December 31, 2020 200,000 58,667 138,667 12,667 50,667 14,667 - X Click the icon to view the additional data) 2019 $ 185,199 76,000 96,000 11,067 $ 30,667 32,000 ed the en c min nc. 020 MİMİNiND Income Statement Newton Travel Products, Inc. Income Statement Year Ended December 31, 2020 Revenues Service revenue Dividend revenue Expenses Cost of goods sold Salary experie Depreciation expense Advertising expense Interest expense Income tax expense Net income $ 377,333 11,600 128,000 72.000 36,000 5,733 2.800 8,000 $388,933 252.533 $ 136400 X and financing activities
Transcribed Image Text:on tior tion tion tion tion tion tion ion Data Additional data: a. Acquisition of plant assets was $266,666. Of this amount, $213,333 was paid in cash and $53,333 by signing a note payable. b. Proceeds from sale of land totalled $30,667. c. Proceeds from issuance of common share totalled $80,000. d. Payment of long-term note payable was $17,333. e. Payment of dividends was $13,333. f. From the balance sheet Current Assets: Cash Accounts receivable Inventory Prepaid expenses Current Liabilities: Accounts payable Accrued liabilses |$ December 31, 2020 200,000 58,667 138,667 12,667 50,667 14,667 - X Click the icon to view the additional data) 2019 $ 185,199 76,000 96,000 11,067 $ 30,667 32,000 ed the en c min nc. 020 MİMİNiND Income Statement Newton Travel Products, Inc. Income Statement Year Ended December 31, 2020 Revenues Service revenue Dividend revenue Expenses Cost of goods sold Salary experie Depreciation expense Advertising expense Interest expense Income tax expense Net income $ 377,333 11,600 128,000 72.000 36,000 5,733 2.800 8,000 $388,933 252.533 $ 136400 X and financing activities
K The income statement and additional data of Newton Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. 2. Evaluate Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation Requirement 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the non-cash investing and financing activities. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for numbers to be subtracted and for negative amounts.) Newton Travel Products, Inc. Statement of Cash Flows Year Ended December 31, 2020 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities Cash flows from investing activities
Transcribed Image Text:K The income statement and additional data of Newton Travel Products, Inc., follow: (Click the icon to view the income statement.) (Click the icon to view the additional data.) Requirements 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. 2. Evaluate Newton's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the reason for your evaluation Requirement 1. Prepare Newton's statement of cash flows for the year ended December 31, 2020, using the indirect method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the non-cash investing and financing activities. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for numbers to be subtracted and for negative amounts.) Newton Travel Products, Inc. Statement of Cash Flows Year Ended December 31, 2020 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities Cash flows from investing activities
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS