ne comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 2097, iš as folls Dec. 31, Dec. 31, 20Y8 20Y7 Assets $145,670.00 $179,640 00 3 Cash 4 Accounts receivable (net) 225,480.00 241,430.00 5 Merchandise inventory 320,660.00 298,210.00 6 Prepaid expenses 12,990.00 8,900.00 655,730.00 537410.00 7 Equipment 8 Accumulated depreciation-equipment (132,200.00) $1,188,910.00 $1,133,390.00 (171,620.00) 91 Total asséts 10 Llabilities and Stockholders' Equity $250,770.00 $237,180 00 11 Accounts payable (merchandise creditors) 12 Mortgage note payable 0.00 336,110.00 13 Common stock, $10 par 74,000.00 24,000.00 480,000.00 320,000.00 14 Excess of paid-in capital over par 15 Retained eamings 16 Total liabilities and stockholders' equity 216,100.00 384,140.00 $1,188,910.00 $1,133,390.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for a as follows: a. Net income, $321,680. b. Depreciation reported on the income statement, $84,000. c. Equipment was purchased at a cost of $162,900, and fully depreciated equipment costing $44,580 was discarded, with no salvage realized. d. The mortgage note payable was nI due for six years, but the terms permitted earlier payment without penalty. e. 10,000 shares of common stock were issued at $21 for cash. 1. Cash dividends declared and pald, $153,640.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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he comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
abels and Amount Descriptions
Labels
Dec. 31,
Dec. 31,
December 31, 20Y8
For the Year Ended December 31, 20Y8
Amount Descriptions
Cash paid for equipment
Cash received from issuing common
20Y8
20Υ7
12
Assets
3 Cash
$145,670.00 $179,640.00
4 Accounts receivable (net)
225,480.00
241,430.00
stock
5 Merchandise inventory
320,660.00
298,210.00
Cash dividends
6 Prepaid expenses
12,990.00
8,900.00
Cash paid to retire mortgage note
7 Equipment
655,730.00
537,410.00
payable
Decrease in merchandise inventory
8 Accumulated depreciation-equipment
(171,620.00)
(132,200.00)
Total assets
$1,188,910.00 $1,133,3
Decrease in accounts payable
Decrease in accounts receivable
10
Liabilities and Stockholders' Equity
Decrease in prepaid expenses
Depreciation
Increase in accounts payable
11 Accounts payable (merchandise creditors)
$250,770.00
$237.180.00
12 Mortgage note payable
00
336,110.00
13 Common stock, $10 par
74,000.00
24,000.00
Increase in accounts receivable
14 Excess of paid-in capital over par
480,000.00
320,000.00
Increase in merchandise inventory
15 Retained eamings
384,140.00
216.100.00
Increase in prepaid expenses
Net increase in cash
Net decrease in cash
16 Total liabilities and stockholders' equity
$1,188,910.00 $1,133,390.00
Net cash flows from financing activities
Net cash flows from investing activities
Net cash flows from operating activities
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are
as follows:
Net cash flows used for financing
A
activities
at
a. Net income, $321,680.
Net cash flows used for investing
b. Depreciation reported on the Income statement, $84,000.
c. Equipment was purchased at a cost of $162,900, and fully depreciated equipment costing
$44,580 was discarded, with no salvage realized.
d. The mortgage note payable was n due for six years, but the terms permitted earlier payment
without penalty.
e. 10,000 shares of common stock were issu
f. Cash dividends declared and paid, $153,640.
activities
Net cash flows used for operating
activities
Net income
Net loss
at $21 for cash.
Required:
Prepare a statement of cash flows, using the indirect method of presenting
cash flows from (used for) operating activities. Be sure to complete the heading of the statement.
Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer
choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a
net cash outflow for each section, if required.
Transcribed Image Text:he comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: abels and Amount Descriptions Labels Dec. 31, Dec. 31, December 31, 20Y8 For the Year Ended December 31, 20Y8 Amount Descriptions Cash paid for equipment Cash received from issuing common 20Y8 20Υ7 12 Assets 3 Cash $145,670.00 $179,640.00 4 Accounts receivable (net) 225,480.00 241,430.00 stock 5 Merchandise inventory 320,660.00 298,210.00 Cash dividends 6 Prepaid expenses 12,990.00 8,900.00 Cash paid to retire mortgage note 7 Equipment 655,730.00 537,410.00 payable Decrease in merchandise inventory 8 Accumulated depreciation-equipment (171,620.00) (132,200.00) Total assets $1,188,910.00 $1,133,3 Decrease in accounts payable Decrease in accounts receivable 10 Liabilities and Stockholders' Equity Decrease in prepaid expenses Depreciation Increase in accounts payable 11 Accounts payable (merchandise creditors) $250,770.00 $237.180.00 12 Mortgage note payable 00 336,110.00 13 Common stock, $10 par 74,000.00 24,000.00 Increase in accounts receivable 14 Excess of paid-in capital over par 480,000.00 320,000.00 Increase in merchandise inventory 15 Retained eamings 384,140.00 216.100.00 Increase in prepaid expenses Net increase in cash Net decrease in cash 16 Total liabilities and stockholders' equity $1,188,910.00 $1,133,390.00 Net cash flows from financing activities Net cash flows from investing activities Net cash flows from operating activities Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net cash flows used for financing A activities at a. Net income, $321,680. Net cash flows used for investing b. Depreciation reported on the Income statement, $84,000. c. Equipment was purchased at a cost of $162,900, and fully depreciated equipment costing $44,580 was discarded, with no salvage realized. d. The mortgage note payable was n due for six years, but the terms permitted earlier payment without penalty. e. 10,000 shares of common stock were issu f. Cash dividends declared and paid, $153,640. activities Net cash flows used for operating activities Net income Net loss at $21 for cash. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the
minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required.
Orange Angel Enterprises Inc.
Statement of Cash Flows
(Label)
1 Cash flows from (used for) operating activities:
2
Adjustments to reconcile net income to net cash flows from (used
3
for) operating activities:
4
Changes in current operating assets and liabilities:
6.
7
8.
10
11 Cash flows from (used for) investing activities:
12
13
14 Cash flows from (used for) financing activities:
15
16
17
18
19
20 Cash balance, January 1, 20Y8
21 Cash balance, December 31, 20Y8
Transcribed Image Text:Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete the heading of the statement. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow for each section, if required. Orange Angel Enterprises Inc. Statement of Cash Flows (Label) 1 Cash flows from (used for) operating activities: 2 Adjustments to reconcile net income to net cash flows from (used 3 for) operating activities: 4 Changes in current operating assets and liabilities: 6. 7 8. 10 11 Cash flows from (used for) investing activities: 12 13 14 Cash flows from (used for) financing activities: 15 16 17 18 19 20 Cash balance, January 1, 20Y8 21 Cash balance, December 31, 20Y8
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