Lompany, Ino. Statement of Cash Flows For the year ended December 31, Question: Is this Cash Flov statement prepared on the Direct or Indirect method? 20X2 20X1 20X0 Ansver: Cash From (For) Operations Net Income (Loss) 50,900 5,200 Adjustments to reconcile changes in net income to cash flow provided (used) by operating activities Depreciation & Amortization Changes in financial assets and liabilities: Change in AIR Change in Inventory Change in Prepaid Expenses Change in A/P Change in Acorued Expenses Change in Defered Revenue Net cash provided by operating activities: (15,000) 14,200 800 58,100 (50,600) 2,500 1,500 500 3,000 2,500 500 (3,000) (5,000) (2,200) 200 1,800 (1,000) (3,000) (1,000) (3,000) 4,000 36,100 14,100 11,700 Cash From (For) Investing Capital Expenditures I Net cash provided (used) by investing activities 110,000 (10,000) (5,000) 110,000 (10,000) (5,000) Cash From (For) Financing Payment of Long Term Debt Additional Paid in Capital I Net cash provided (used) by financing activities (60,000) (10,000) (90,000) 88,500 (60,000) (10,000) (1,500) Total Increase (Decrease) in Cash 86,100 (5,900) 5,200 Beginning Cash 80,000 85,900 80,700 Ending Cash 166,100 80,000 85,900 166,100 Supplemental information: Interest paid 5,000
Lompany, Ino. Statement of Cash Flows For the year ended December 31, Question: Is this Cash Flov statement prepared on the Direct or Indirect method? 20X2 20X1 20X0 Ansver: Cash From (For) Operations Net Income (Loss) 50,900 5,200 Adjustments to reconcile changes in net income to cash flow provided (used) by operating activities Depreciation & Amortization Changes in financial assets and liabilities: Change in AIR Change in Inventory Change in Prepaid Expenses Change in A/P Change in Acorued Expenses Change in Defered Revenue Net cash provided by operating activities: (15,000) 14,200 800 58,100 (50,600) 2,500 1,500 500 3,000 2,500 500 (3,000) (5,000) (2,200) 200 1,800 (1,000) (3,000) (1,000) (3,000) 4,000 36,100 14,100 11,700 Cash From (For) Investing Capital Expenditures I Net cash provided (used) by investing activities 110,000 (10,000) (5,000) 110,000 (10,000) (5,000) Cash From (For) Financing Payment of Long Term Debt Additional Paid in Capital I Net cash provided (used) by financing activities (60,000) (10,000) (90,000) 88,500 (60,000) (10,000) (1,500) Total Increase (Decrease) in Cash 86,100 (5,900) 5,200 Beginning Cash 80,000 85,900 80,700 Ending Cash 166,100 80,000 85,900 166,100 Supplemental information: Interest paid 5,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Fill in the
Transcribed Image Text:Company, Inc
Statement of Cash Flows
For the year ended December 31,
Question:
Is this Cash Flow statement prepared on the Direct or Indirect method?
20X2
20X1
20X0
Ansver:
Cash From (For) Operations
Net Income (Loss)
50,900
5,200
Adjustments to reconcile changes in net income to cash flow
provided (used) by operating activities
Depreciation & Amortization
Changes in finanoial assets and liabilities:
Change in A/R
Change in Inventory
Change in Prepaid Expenses
Change in A/P
Change in Acorued Expenses
Change in Deferred Revenue
Net cash provided by operating activities:
(15,000)
14,200
800
58,100
(50,600)
2,500
1,500
500
3,000
2,500
500
(3,000)
(5,000)
(2,200)
200
(3,000)
1,800
(1,000)
(3,000)
(1,000)
4,000
36,100
14,100
11,700
Cash From (For) Investing
Capital Expenditures
I Net cash provided (used) by investing activities
110,000
(10,000)
(5,000)
110,000
(10,000)
(5,000)
Cash From (For) Financing
Payment of Long Term Debt
Additional Paid in Capital
I Net cash provided (used) by financing activities
(60,000)
(10,000)
(90,000)
88,500
(60,000)
(10,000)
(1,500)
Total Increase (Decrease) in Cash
86,100
(5,900)
5,200
Beginning Cash
80,000
85,900
80,700
Ending Cash
166,100
80,000
85,900
166,100
Supplemental information:
Interest paid
5,000
Transcribed Image Text:20X2
20X1
20X0
Adjusted TB
Adjusted TB
Adjusted TB
Account
DR
CR
DR
CR
DR
CR
Cash
50,000
80,000
85,900
Accounts Receivable
25,000
58,100
7,500
1,500
2,500
Inventory
4,000
2,000
Prepaid expense
1,000
3,000
Fixed Assets
220,000
110,000
100,000
AD
20,000
15,000
80
10,000
Current portion of LTD
Accounts Payable
Accrued Expense
10,000
10,000
7,200
1,200
2,500
5,000
4,000
3,000
Deferred revenue
2,000
3,000
4,000
Note Payable
45,000
60,000
70,000
Common Stock
1,500
1,500
1,500
APIC
Retained earnings
Sales
Phone Sales
98,500
98,500
98,500
56,100
5,200
225,000
125,000
10,000
5,000
2,500
1,000
Cost of Goods Sold
150,600
50,000
80
Depreciation expense
5,000
14,200
80
Insurance
10,000
5,000
3,000
Interest
1,500
5,000
Property tax
2,500
2,400
1,200
469,600
469,600
328,700 328,700
204,200 204,200
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education