Plepare CRC% balance sheet at December 31, 2018. *. Prepare CRC statement of cash fows using the indirect method for the year ended December 31, 2018. P14-40B Preparing the statement of cash flows-indirect method Learning Objective 2 Accountants for Benson, Inc. have assembled the following data for the year ended December 31, 2018: Net Cash Prov. by Op Act. $85,700 2018 2017 Current Assets: Cash $ 105,100 $ 18,000 Accounts Receivable 64,400 68,900 Merchandise Inventory 86,000 82,000 Current Liabilities: Accounts Payable 58,000 56,100 Income Tax Payable 14,700 16,900 Transaction Data for 2018: Issuance of common stock for cash $ 37,000 Payment of notes payable $ 47,100 Depreciation expense 24,000 Payment of cash dividends 53,000 Purchase of equipment with cash 69,000 Issuance of notes payable to borrow cash 68,000 Acquisition of land by issuing long-term notes payable 123,000 Gain on sale of building 4,500 Book value of building sold 61,000 Net income 66,000 Prepare Benson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities.
Plepare CRC% balance sheet at December 31, 2018. *. Prepare CRC statement of cash fows using the indirect method for the year ended December 31, 2018. P14-40B Preparing the statement of cash flows-indirect method Learning Objective 2 Accountants for Benson, Inc. have assembled the following data for the year ended December 31, 2018: Net Cash Prov. by Op Act. $85,700 2018 2017 Current Assets: Cash $ 105,100 $ 18,000 Accounts Receivable 64,400 68,900 Merchandise Inventory 86,000 82,000 Current Liabilities: Accounts Payable 58,000 56,100 Income Tax Payable 14,700 16,900 Transaction Data for 2018: Issuance of common stock for cash $ 37,000 Payment of notes payable $ 47,100 Depreciation expense 24,000 Payment of cash dividends 53,000 Purchase of equipment with cash 69,000 Issuance of notes payable to borrow cash 68,000 Acquisition of land by issuing long-term notes payable 123,000 Gain on sale of building 4,500 Book value of building sold 61,000 Net income 66,000 Prepare Benson's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
Create statement of cash flows for year ended December 31 2018 and notes for indirect method.
Transcribed Image Text:39
40
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42
43
Notes for Indirect Method
45
46 Increase in Accounts Receivable=DDecrease in Cash
47
44
Decrease in Accounts Receivable=Increase in Cash
48
Increase in Inventories=Decrease in Cash
Decrease in Inventories=Increase in Cash
49
50
51
Increase in Accounts Payable=Increase in Cash
52
53 Decrease in Accounts Payable=Decrease in Cash
54
55 Increase in Wages Payable=Increase in Cash
Decrease in Wages Payable=Decrease in Cash
56
57
Increase in Taxes Payable=Increase in Cash
Decrease in Taxes Payable%=Decrease in Cash
60
61
58
59
62
Sheet1
Sheet2
Sheet3
Transcribed Image Text:l Tevenues listed together and all expenses listed
together,
3. Prepare CRC% balance sheet at December 31, 2018.
Prepare CRC% statement of cash flows using the indirect method for the year
ended December 31, 2018.
4.
Learning Objective 2
Accountants for Benson, Inc. have assembled the following data for the year ended
December 31, 2018:
Net Cash Prov, by Op.
Act. $85,700
2018
2017
Current Assets:
Cash
$ 105, 100
$ 18,000
Accounts Receivable
64,400
68,900
Merchandise Inventory
86,000
82,000
Current Liabilities:
Accounts Payable
58,000
56,100
Income Tax Payable
14,700
16,900
Transaction Data for 2018:
Issuance of common stock for cash
$ 37,000
Payment of notes payable
$ 47,100
Depreciation expense
24,000
Payment of cash dividends
53,000
Purchase of equipment with cash
69,000
Issuance of notes payable to borrow cash
68,000
Acquisition of land by issuing long-term notes payable
123,000
Gain on sale of building
4,500
Book value of building sold
61,000
Net income
66,000
Prepare Benson's statement of cash flows using the indirect method. Include an
accompanying schedule of non-cash investing and financing activities.
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