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Prepare Stellar's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities.

Prepare Stellar's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Stellar Software Corp. has assembled the following data for the years ending December 31, 2021 and 2020. (Click the icon to view the transaction data.) (Click the icon to view the current accounts.) Requirement 1. Prepare Stellar's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities. Start by completing the cash flows from operating activities. Then complete the remaining sections of the statement of cash flows including the schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Stellar Software Corp. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: ← Net cash provided by (used for) operating activities
Transcribed Image Text:Stellar Software Corp. has assembled the following data for the years ending December 31, 2021 and 2020. (Click the icon to view the transaction data.) (Click the icon to view the current accounts.) Requirement 1. Prepare Stellar's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities. Start by completing the cash flows from operating activities. Then complete the remaining sections of the statement of cash flows including the schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Stellar Software Corp. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: ← Net cash provided by (used for) operating activities
Data table Current Accounts: Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Income tax payable Accrued liabilities December 31, 2020 2021 $ 105,800 $ 22,000 9,300 3,800 $ 57,700 $ 28,800 15,800 10,000 64,900 85,000 2,000 55,500 16,800 7,800 More info Transaction Data for 2021: Acquisition of land by issuing long-term note payable Stock dividends Collection of loan Depreciation expense Purchase of building with cash Retirement of bonds payable by issuing common stock Purchase of long-term investment with cash Purchase of treasury stock $ 200,000 Loss on sale of equipment 32,200 Payment of cash dividends 10,000 Issuance of long-term note 22,000 payable to borrow cash Net income 123,000 Issuance of common stock for cash 66,000 Proceeds from sale of equipment 45,300 Amortization expense $ 14,600 32,000 46,000 34,600 6,300 63,000 12,300 5,500 - X
Transcribed Image Text:Data table Current Accounts: Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Income tax payable Accrued liabilities December 31, 2020 2021 $ 105,800 $ 22,000 9,300 3,800 $ 57,700 $ 28,800 15,800 10,000 64,900 85,000 2,000 55,500 16,800 7,800 More info Transaction Data for 2021: Acquisition of land by issuing long-term note payable Stock dividends Collection of loan Depreciation expense Purchase of building with cash Retirement of bonds payable by issuing common stock Purchase of long-term investment with cash Purchase of treasury stock $ 200,000 Loss on sale of equipment 32,200 Payment of cash dividends 10,000 Issuance of long-term note 22,000 payable to borrow cash Net income 123,000 Issuance of common stock for cash 66,000 Proceeds from sale of equipment 45,300 Amortization expense $ 14,600 32,000 46,000 34,600 6,300 63,000 12,300 5,500 - X
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