Lindsey Herrmann has completed the basic format to be used in preparing the statement of cash Consultants. Listed below in random order are line items to be included in the statement of cash flows. Purchase of equipment Increase in inventory Increase in prepaid rent Payment of dividends Depreciation expense Increase in accounts receivable Increase in accounts payable Loss on sale of land Net income Repayment of notes payable Cash received from the sale of land Issuance of common stock LONGHORN CONSULTANTS Statement of Cash Flows $229,000 28,000 7,500 36,000 14,000 52,000 21,000 Required: Prepare the statement of cash flows for Longhorn Consultants using the indirect method. (Amounts values should be indicated by a minus sign.) 13,000 63,000 47,000 4,500 246,000 Cash Flows from Operating Activities For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lindsey Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for Longhorn
Consultants.
Listed below in random order are line items to be included in the statement of cash flows.
Purchase of equipment
Increase in inventory
Increase in prepaid rent
Payment of dividends
Depreciation expense
Increase in accounts receivable
Increase in accounts payable
Loss on sale of land
Net income
Repayment of notes payable
Cash received from the sale of land
Issuance of common stock
$229,000
28,000
7,500
36,000
14,000
52,000
21,000
13,000
Cash Flows from Operating Activities
63,000
47,000
4,500
246,000
Required:
Prepare the statement of cash flows for Longhorn Consultants using the indirect method. (Amounts to be deducted and negatíve
values should be indicated by a minus sign.)
LONGHORN CONSULTANTS
Statement of Cash Flows
For the Year Ended December 31, 2024
Adjustments to reconcile net income to net cash flows from operating activities:
HH
HH
22 of 34
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Transcribed Image Text:Lindsey Herrmann has completed the basic format to be used in preparing the statement of cash flows (indirect method) for Longhorn Consultants. Listed below in random order are line items to be included in the statement of cash flows. Purchase of equipment Increase in inventory Increase in prepaid rent Payment of dividends Depreciation expense Increase in accounts receivable Increase in accounts payable Loss on sale of land Net income Repayment of notes payable Cash received from the sale of land Issuance of common stock $229,000 28,000 7,500 36,000 14,000 52,000 21,000 13,000 Cash Flows from Operating Activities 63,000 47,000 4,500 246,000 Required: Prepare the statement of cash flows for Longhorn Consultants using the indirect method. (Amounts to be deducted and negatíve values should be indicated by a minus sign.) LONGHORN CONSULTANTS Statement of Cash Flows For the Year Ended December 31, 2024 Adjustments to reconcile net income to net cash flows from operating activities: HH HH 22 of 34 < Prev Help Next > Sav
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