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Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) MONTY CORPORATION Statement of Cash Flows (Indirect Method) # Adjustments to reconcile net income to net cash provided by operating activities: #] # # # # # 9 : # ◆ + $

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) MONTY CORPORATION Statement of Cash Flows (Indirect Method) # Adjustments to reconcile net income to net cash provided by operating activities: #] # # # # # 9 : # ◆ + $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MONTY CORPORATION Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to net cash provided by operating activities: ♦ ⇒ ♦ # # # ♦ # ♦ → # # ♦ ♦ ♦ ♦ ♦ $
Transcribed Image Text:Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MONTY CORPORATION Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to net cash provided by operating activities: ♦ ⇒ ♦ # # # ♦ # ♦ → # # ♦ ♦ ♦ ♦ ♦ $
Question 26 Monty Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2020: MONTY Inc. Comparative Statement of Financial Position December 31 2019 2020 $60,750 $53,600 58,000 50,200 40,500 5,700 Equipment 151,000 132,500 Accumulated depreciation-equipment (32,750) (22,900) Total assets $283,200 $289,900 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings 6,700 61,500 70,000 130,250 130,250 41,450 45,950 Total liabilities and shareholders' equity $283,200 $289,900 MONTY Inc. Income Statement Year Ending December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income $46,500 $37,000 3,500 Interest expense $11,200 Gain on disposal of equipment (2,200) Income before income tax Income tax expense Net income 72,500 4,000 $368,000 210,000 158,000 121,500 36,500 9,000 27,500 20,200 $7,300 Additional information: 1. Dividends on common shares in the amount of $11,800 were declared and paid during 2020. 2. Depreciation expense of $24,200 is included in operating expenses. 3. Equipment with a cost of $20,500 that was 70% depreciated was sold during 2020.
Transcribed Image Text:Question 26 Monty Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2020: MONTY Inc. Comparative Statement of Financial Position December 31 2019 2020 $60,750 $53,600 58,000 50,200 40,500 5,700 Equipment 151,000 132,500 Accumulated depreciation-equipment (32,750) (22,900) Total assets $283,200 $289,900 Cash Accounts receivable Inventory Prepaid rent Accounts payable Income tax payable Long-term loans payable Common shares Retained earnings 6,700 61,500 70,000 130,250 130,250 41,450 45,950 Total liabilities and shareholders' equity $283,200 $289,900 MONTY Inc. Income Statement Year Ending December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income $46,500 $37,000 3,500 Interest expense $11,200 Gain on disposal of equipment (2,200) Income before income tax Income tax expense Net income 72,500 4,000 $368,000 210,000 158,000 121,500 36,500 9,000 27,500 20,200 $7,300 Additional information: 1. Dividends on common shares in the amount of $11,800 were declared and paid during 2020. 2. Depreciation expense of $24,200 is included in operating expenses. 3. Equipment with a cost of $20,500 that was 70% depreciated was sold during 2020.
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