ndirect Method— Preparing a Statement of Cash Flows Range Company has the following selected data from its annual period ended December 31, 2020. Selected Data Amount Paid cash dividend $20,000 Purchase of equipment 120,000 Increase in merchandise inventory 28,000 Borrowed on a long-term note 50,000 Acquired land as a future company site; paid in full by issuing 6,000 shares of Range capital stock, $10 par, when the market price per share was $15 ? Increase in prepaid expenses 6,000 Decrease in accounts receivable 14,000 Payment of bonds payable in full 194,000 Increase in accounts payable 10,000 Cash from disposal of equipment (sold at book value) 24,000 Decrease in rent receivable 4,000 Income Statement For the Year Ended December 31, 2020 Sales revenue $800,000 Rent revenue 20,000 Cost of goods sold 380,000 Depreciation expense 40,000 Remaining expenses 194,000 Net income $206,000 Required Prepare a statement of cash flows for the Range Company for the year ended December 31, 2020, using the indirect method. The beginning-year cash balance was $124,000. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Answer Adjustments: Depreciation expense Answer Decrease in accounts receivable Answer Decrease in rent receivable Answer Increase in merchandise inventory Answer Increase in prepaid expenses Answer Increase in accounts payable Answer Net cash provided by operating activities Answer Cash flows from investing activities Cash paid for acquisition of equipment Answer Cash received from sale of fixed assets Answer Net cash used by investing activities Answer Cash flows from financing activities Cash received from long-term debt issuance Answer Cash paid on bond extinguishment Answer Cash paid for dividends Answer Net cash used by financing activities Answer Net increase in cash during 2020 Answer Cash, January 1, 2020 Answer Cash, December 31, 2020 Answer Noncash disclosure: Purchased a plant site by issuing capital stock
ndirect Method— Preparing a Statement of Cash Flows Range Company has the following selected data from its annual period ended December 31, 2020. Selected Data Amount Paid cash dividend $20,000 Purchase of equipment 120,000 Increase in merchandise inventory 28,000 Borrowed on a long-term note 50,000 Acquired land as a future company site; paid in full by issuing 6,000 shares of Range capital stock, $10 par, when the market price per share was $15 ? Increase in prepaid expenses 6,000 Decrease in accounts receivable 14,000 Payment of bonds payable in full 194,000 Increase in accounts payable 10,000 Cash from disposal of equipment (sold at book value) 24,000 Decrease in rent receivable 4,000 Income Statement For the Year Ended December 31, 2020 Sales revenue $800,000 Rent revenue 20,000 Cost of goods sold 380,000 Depreciation expense 40,000 Remaining expenses 194,000 Net income $206,000 Required Prepare a statement of cash flows for the Range Company for the year ended December 31, 2020, using the indirect method. The beginning-year cash balance was $124,000. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Answer Adjustments: Depreciation expense Answer Decrease in accounts receivable Answer Decrease in rent receivable Answer Increase in merchandise inventory Answer Increase in prepaid expenses Answer Increase in accounts payable Answer Net cash provided by operating activities Answer Cash flows from investing activities Cash paid for acquisition of equipment Answer Cash received from sale of fixed assets Answer Net cash used by investing activities Answer Cash flows from financing activities Cash received from long-term debt issuance Answer Cash paid on bond extinguishment Answer Cash paid for dividends Answer Net cash used by financing activities Answer Net increase in cash during 2020 Answer Cash, January 1, 2020 Answer Cash, December 31, 2020 Answer Noncash disclosure: Purchased a plant site by issuing capital stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ndirect Method— Preparing a Statement of
Range Company has the following selected data from its annual period ended December 31, 2020.
Selected Data | Amount |
---|---|
Paid cash dividend | $20,000 |
Purchase of equipment | 120,000 |
Increase in merchandise inventory | 28,000 |
Borrowed on a long-term note | 50,000 |
Acquired land as a future company site; paid in full by issuing 6,000 shares of Range capital stock, $10 par, when the market price per share was $15 | ? |
Increase in prepaid expenses | 6,000 |
Decrease in |
14,000 |
Payment of bonds payable in full | 194,000 |
Increase in accounts payable | 10,000 |
Cash from disposal of equipment (sold at book value) | 24,000 |
Decrease in rent receivable | 4,000 |
Income Statement | |
---|---|
For the Year Ended December 31, 2020 | |
Sales revenue | $800,000 |
Rent revenue | 20,000 |
Cost of goods sold | 380,000 |
40,000 | |
Remaining expenses | 194,000 |
Net income
|
$206,000 |
Required
Prepare a statement of cash flows for the Range Company for the year ended December 31, 2020, using the indirect method. The beginning-year cash balance was $124,000.
Statement of Cash Flows | |
---|---|
For the Year Ended December 31, 2020 | |
Cash flows from operating activities | |
Net income | Answer
|
Adjustments: | |
Depreciation expense
|
Answer
|
Decrease in accounts receivable
|
Answer
|
Decrease in rent receivable
|
Answer
|
Increase in merchandise inventory
|
Answer
|
Increase in prepaid expenses
|
Answer
|
Increase in accounts payable
|
Answer
|
Net cash provided by operating activities | Answer
|
Cash flows from investing activities | |
Cash paid for acquisition of equipment | Answer
|
Cash received from sale of fixed assets | Answer
|
Net cash used by investing activities | Answer
|
Cash flows from financing activities | |
Cash received from long-term debt issuance | Answer
|
Cash paid on bond extinguishment | Answer
|
Cash paid for dividends | Answer
|
Net cash used by financing activities | Answer
|
Net increase in cash during 2020 | Answer
|
Cash, January 1, 2020 | Answer
|
Cash, December 31, 2020 | Answer
|
Noncash disclosure: | |
Purchased a plant site by issuing capital stock | Answer
|
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