PA12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5] XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Eamings Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $18,500. b. Paid $5,500 on the long-term note payable. c. Issued new shares of stock for $13,500 cash. Current Year $ 33,300 34,000 40,000 113,500 (29,000) $191,800 $115,000 67,500 35,800 $ 11,700 $ 35.000 $ 26,500 1,500 1,650 39,000 33,500 85.600 72,100 36,200 24,500 $191,800 $163,750 Previous Year $ 28,250 27,500 d. No dividends were declared or paid. e. Other expenses included depreciation, $4,500; Salaries and wages, $19,500; taxes, $5,500; utilities, $6,300 37,500 95,000 (24,500) $163,750 f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Cash Flows from Operating Activities: Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Investing Activities: Cash Flows from Financing Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
PA12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5] XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Eamings Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $18,500. b. Paid $5,500 on the long-term note payable. c. Issued new shares of stock for $13,500 cash. Current Year $ 33,300 34,000 40,000 113,500 (29,000) $191,800 $115,000 67,500 35,800 $ 11,700 $ 35.000 $ 26,500 1,500 1,650 39,000 33,500 85.600 72,100 36,200 24,500 $191,800 $163,750 Previous Year $ 28,250 27,500 d. No dividends were declared or paid. e. Other expenses included depreciation, $4,500; Salaries and wages, $19,500; taxes, $5,500; utilities, $6,300 37,500 95,000 (24,500) $163,750 f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Cash Flows from Operating Activities: Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Investing Activities: Cash Flows from Financing Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![PA12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5]
XS Supply Company is developing its annual financial statements at December 31. The statements are
complete except for the statement of cash flows. The completed comparative balance sheets and income
statement are summarized:
Balance Sheet at December 31
Cash
Accounts Receivable
Inventory
Equipment
Accumulated Depreciation Equipment
Accounts Payable
Salaries and Wages Payable
Note Payable (long-term)
Common Stock
Retained Eamings
Income Statement
Sales Revenue
Cost of Goods Sold
Other Expenses
Net Income
Current Year
$ 33,300
34,000
40,000
113,500
(29,000)
$191,800
$ 35,000
1,500
33,500
$ 26,500
1,650
39,000
85,600
72,100
36,200
24,500
$191,800 $163,750
$115,000
67,500
35,800
$ 11,700
Previous
Year
Additional Data:
a. Bought equipment for cash, $18,500.
b. Paid $5,500 on the long-term note payable.
c. Issued new shares of stock for $13,500 cash.
d. No dividends were declared or paid.
e. Other expenses included depreciation, $4,500; Salaries and wages, $19,500, taxes, $5,500; utilities,
$6,300.
$ 28,250
27,500
37,500
95,000
(24,500)
$163,750
1. Accounts Payable includes only inventory purchases made on credit. Because there are no liability
accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
Required:
1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method.
(Amounts to be deducted should be indicated with a minus sign.)
Cash Flows from Operating Activities:
XS SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended December 31
Cash Flows from Investing Activities:
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Cash Flows from Financing Activities:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3daf467-eeff-4c32-aeb7-80d023bf4d7a%2F83912153-bf30-41e7-be37-366088ad7244%2Fk9kztko_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PA12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5]
XS Supply Company is developing its annual financial statements at December 31. The statements are
complete except for the statement of cash flows. The completed comparative balance sheets and income
statement are summarized:
Balance Sheet at December 31
Cash
Accounts Receivable
Inventory
Equipment
Accumulated Depreciation Equipment
Accounts Payable
Salaries and Wages Payable
Note Payable (long-term)
Common Stock
Retained Eamings
Income Statement
Sales Revenue
Cost of Goods Sold
Other Expenses
Net Income
Current Year
$ 33,300
34,000
40,000
113,500
(29,000)
$191,800
$ 35,000
1,500
33,500
$ 26,500
1,650
39,000
85,600
72,100
36,200
24,500
$191,800 $163,750
$115,000
67,500
35,800
$ 11,700
Previous
Year
Additional Data:
a. Bought equipment for cash, $18,500.
b. Paid $5,500 on the long-term note payable.
c. Issued new shares of stock for $13,500 cash.
d. No dividends were declared or paid.
e. Other expenses included depreciation, $4,500; Salaries and wages, $19,500, taxes, $5,500; utilities,
$6,300.
$ 28,250
27,500
37,500
95,000
(24,500)
$163,750
1. Accounts Payable includes only inventory purchases made on credit. Because there are no liability
accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
Required:
1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method.
(Amounts to be deducted should be indicated with a minus sign.)
Cash Flows from Operating Activities:
XS SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended December 31
Cash Flows from Investing Activities:
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Cash Flows from Financing Activities:
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