Miracle, Incorporated provided the following balance sheets and income statement for the current year. (Click the icon to view the balance sheet.) Requirement (Click the icon to view the income statement.) Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling, general, and administrative expenses. All acquisitions of property, plant, and equipment were made using cash. (Use a minus sign or parentheses for any cash outflows and/or net cash used by operating activities. If an input field is not used in the statement, leave the field empty; do not select a label or enter a zero.) Miracle, Incorporated Partial Statement of Cash Flows (Direct Method) For the Year Ended December 31 Operating Activities: Net Cash Provided (Used) by Operating Activities Income Statement W Balance Sheet Miracle, Incorporated Miracle, Incorporated Balance Sheet At December 31 Income Statement Assets Ending Beginning For the Year Ended December 31 Current Assets Sales $ 80,585 Cash $ 35,000 $ 3,900 47,951 Cost of Goods Sold Accounts Receivable-net 8,700 8,400 $ 32,634 Gross Profit Merchandise Inventory 2,000 3,500 Selling, General, and Administrative Expenses $ 10,900 $ Prepaid Insurance 1,600 $ 2,700 Depreciation Expense 2,900 $ 47,300 $ 18,500 Total Current Assets $ 13,800 Total Operating Expenses Noncurrent Assets Operating Income $ 18,834 Investments $ 4,900 $ 23,900 Interest Expense (3,900) Property, Plant, and Equipment - net 58,600 60,000 $ 3,700 Interest Revenue $ 63,500 $ 83,900 Total Noncurrent Assets Income before Tax $ 18,634 $ 110,800 $ 102,400 Total Assets (6,034) Income Tax Expense Liabilities $ 12,600 Net Income Current Liabilities Accounts Payable $ 5,100 $ 1,400 Accrued Expenses 9,600 4,620 5,600 5,350 Print Done Income Taxes Payable $ 20,300 $ 11,370 Total Current Liabilities Noncurrent Liabilities $ 32,200 $ 42,730 Notes Payable $ 32,200 $ 42,730 Total Noncurrent Liabilities $ 52,500 $ 54,100 Total Liabilities Shareholders' Equity Common Stock, $1 par value $ 7,000 $ 7,000 Additional Paid-in Capital in Excess of Par - Common 24,000 24,000 27,300 17,300 Retained Earnings $ 58,300 $ 48,300 Total Shareholders' Equity $ 110,800 $ 102,400 Total Liabilities and Shareholders' Equity - X

Miracle, Incorporated provided the following balance sheets and income statement for the current year. (Click the icon to view the balance sheet.) Requirement (Click the icon to view the income statement.) Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling, general, and administrative expenses. All acquisitions of property, plant, and equipment were made using cash. (Use a minus sign or parentheses for any cash outflows and/or net cash used by operating activities. If an input field is not used in the statement, leave the field empty; do not select a label or enter a zero.) Miracle, Incorporated Partial Statement of Cash Flows (Direct Method) For the Year Ended December 31 Operating Activities: Net Cash Provided (Used) by Operating Activities Income Statement W Balance Sheet Miracle, Incorporated Miracle, Incorporated Balance Sheet At December 31 Income Statement Assets Ending Beginning For the Year Ended December 31 Current Assets Sales $ 80,585 Cash $ 35,000 $ 3,900 47,951 Cost of Goods Sold Accounts Receivable-net 8,700 8,400 $ 32,634 Gross Profit Merchandise Inventory 2,000 3,500 Selling, General, and Administrative Expenses $ 10,900 $ Prepaid Insurance 1,600 $ 2,700 Depreciation Expense 2,900 $ 47,300 $ 18,500 Total Current Assets $ 13,800 Total Operating Expenses Noncurrent Assets Operating Income $ 18,834 Investments $ 4,900 $ 23,900 Interest Expense (3,900) Property, Plant, and Equipment - net 58,600 60,000 $ 3,700 Interest Revenue $ 63,500 $ 83,900 Total Noncurrent Assets Income before Tax $ 18,634 $ 110,800 $ 102,400 Total Assets (6,034) Income Tax Expense Liabilities $ 12,600 Net Income Current Liabilities Accounts Payable $ 5,100 $ 1,400 Accrued Expenses 9,600 4,620 5,600 5,350 Print Done Income Taxes Payable $ 20,300 $ 11,370 Total Current Liabilities Noncurrent Liabilities $ 32,200 $ 42,730 Notes Payable $ 32,200 $ 42,730 Total Noncurrent Liabilities $ 52,500 $ 54,100 Total Liabilities Shareholders' Equity Common Stock, $1 par value $ 7,000 $ 7,000 Additional Paid-in Capital in Excess of Par - Common 24,000 24,000 27,300 17,300 Retained Earnings $ 58,300 $ 48,300 Total Shareholders' Equity $ 110,800 $ 102,400 Total Liabilities and Shareholders' Equity - X

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.21MCE

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