Prepare the statement of cash flows for 2024 using the direct methodPlz do not provide image for answer The following are comparative balance sheets and an income statement for Wentworth Company.CashAccounts receivableInventoryLong-term investmentsTotal assetsLiabilities and shareholders' equityAccounts payableOperating expenses payableBonds payableCommon stockRetained earningsTotalsSalesCost of goods sold:Wentworth CompanyBalance Sheetsas of December 31Beginning inventoryPurchasesGoods available for saleLess: ending inventoryCost of goods soldGross profitWentworth CompanyIncome StatementFor the Year Ended December 31, 2024Operating expensesIncome from operationsOther expenses:Loss on sale of long-term investmentNet loss2024$ 19,500207,000192,000Cash dividends of $57,000 were paid in 2024.0$ 418,500$ 82,20025,20076,000137,00098,100$ 418,500$ 237,000342,000579,000192,0002023$ 132,000117,000237,00072,000$ 558,000$ 132,00016, 200112,000137,000160,800$ 558,000$ 582,000387,000195,000192,0003,000(8,700)$ (5,700)

Answered: Prepare the statement of cash flows for…

Business

Accounting

Prepare the statement of cash flows for 2024 using the direct method

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 48CE

See similar textbooks

Related questions

Q: prepare a cashflow statement using indirect method

A: Particulars Amount Amount Net profit 89300 Adjustments: Proposed Dividend 241000…

Q: Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to…

A: Cash Flow from Operating Activities Cash Flow from Financing Activities Cash flow from Investing…

Q: Preparing the statement of cash flows—direct method Use the Sweet Valley data from Problem…

Q: How does Accounts Receivable impact Declan's Designs 2022 Statement of Cash Flows?

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Preparing the statement of cash flows—direct method Use the Rolling Hills, Inc. data from Problem…

Q: Auga Company Ltd Income Statement Year Ended December 31,2021 Revenues and gains: 2,450,000 103,200…

A: Cash Flow Statement includes: Cash flows from operating activities Cash flows from investing…

Q: Shown below are comparative statements of financial position for Bramble Corporation. Assets Cash…

A: Cash flow statement is the one which is prepared by the entity to report all the cash inflows and…

Q: Problem 3 The following information was obtained from analysis of selected accounts of Jungkook Co.…

A: Cash Flow Statement: The financial statement used in financial accounting that separates the…

Q: Compute the partial statement of cash flows for the year ended December 31, 2018, s computation of…

A: Solution: Introduction: Ruthorford Corporation Cash Flows from operating activities will be…

Q: The profit or loss section of the statement of comprehensive income of ITS NOT OK TO BE OK Company…

A: Statement of cash flows is one of the financial statement which shows all cash inflows and cash…

Q: In an statement of cash flows what is included in the operating activities section? In the…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: ACTIVITY 3 The following data are taken from the records of Pagong Delivery Services for the year…

A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…

Q: Requirements: Reconstruct the company’s comparative balance sheet for 2019/2020 using the above…

A: Statement of cash flow represents the detailed information regarding the flow of cash taken place in…

Q: What is the purpose of the statement of cash flows?

A: Introduction: The internal cash flows the business encounters is not accounted for in the income…

Q: Prepare a statement of cash flows (direct method) for the year 2018. Use the minus sign to indicate…

A: Statement of cash flows: The statement of cash flows records all the sources and use of the cash in…

Q: Help Save & Exit Which of the following items do we report in the statement of cash flows using the…

A: The objective of this question is to identify which of the given items is reported in the statement…

Q: Prepare the Statement of Cash Flows in Direct and Indirect Method

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Scenario: The comparative balance sheet and income statement of SAMS, have just been prepared and…

A: Statement of Cash Flow - This statement shows movement of cash during the financial year. This…

Q: Where can we find authoritative guidance for the statement of cash flows under IFRS?

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: Tertiary Company Balance Sheets (in millions) Dec. 31, Dec. 31, ASSETS: 2020 2019 Cash $ 106 $ 107…

A: Cash flow statement: It is a statement which reports the cash inflows and outflows of a business…

Q: How does Accounts Payable impact Declan's Designs' 2022 Statement of Cash Flows?

A: Accounts payable form part of working capital of a company. Therefore, a change (increase or…

Q: Complete the worksheet for the James Island Clothing Company, filling in the transaction analysis…

A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…

Q: What is the amount and direction (+ or −) of the income taxes payable adjustment to net income in…

A: Cash flow statement indicates inflow and outflow of cash in a business. It categorizes the business…

Q: Classifying Items in the Statement of Cash Flows The following items are commonly reported in a…

A: Cash flow statement is the part of financial statements which shows how much cash generated and cash…

Q: Argem loved everything that involves computers so she decided to open a small Internet cafe upon the…

A: Answer) Cash Flow Statement (Indirect Method) Cash Flow from Operating Activities Amount…

Q: Problem: Prepare and Compute for statement of Cash Flows The following data are taken from the…

A: 1. Following incomes are not actually received in cash till year end, therefore not taken into…

Q: Essay on cash flow statement

A: The cash flow statement records all the cash inflows and all the cash outflows of a business arising…

Q: Dividend Received Loan payment Amounts Recovered Interest Expense Court Administration Fees Cost of…

A: The cash flow statement is prepared at the end of the period to know the cash position. It reflects…

Question

Prepare the statement of cash flows for 2024 using the direct method

Plz do not provide image for answer

The following are comparative balance sheets and an income statement for Wentworth Company.
Cash
Accounts receivable
Inventory
Long-term investments
Total assets
Liabilities and shareholders' equity
Accounts payable
Operating expenses payable
Bonds payable
Common stock
Retained earnings
Totals
Sales
Cost of goods sold:
Wentworth Company
Balance Sheets
as of December 31
Beginning inventory
Purchases
Goods available for sale
Less: ending inventory
Cost of goods sold
Gross profit
Wentworth Company
Income Statement
For the Year Ended December 31, 2024
Operating expenses
Income from operations
Other expenses:
Loss on sale of long-term investment
Net loss
2024
$ 19,500
207,000
192,000
Cash dividends of $57,000 were paid in 2024.
0
$ 418,500
$ 82,200
25,200
76,000
137,000
98,100
$ 418,500
$ 237,000
342,000
579,000
192,000
2023
$ 132,000
117,000
237,000
72,000
$ 558,000
$ 132,000
16, 200
112,000
137,000
160,800
$ 558,000
$ 582,000
387,000
195,000
192,000
3,000
(8,700)
$ (5,700)

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Definition:

VIEW

Step 2: Workings:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Compute Westtown Companys (A) inventory turnover ratio and (B) number of days sales in inventory ratio, using the following information.
The following select account data is taken from the records of Reese Industries for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.
Inventory Analysis Singleton Inc. reported the following information for the current year: Required: Compute Singletons (a) gross profit ratio, (b) inventory turnover ratio, and (c) average days to sell inventory. (Note: Round all answers to two decimal places.)
Inventory analysis A company reports the following: Determine (a) the inventory turnover and (b) the number of days sales in inventory. Round to one decimal place.
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Compare the calculations for gross margin for B76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
Use the following information relating to Shana Company to calculate the inventory turnover ratio and the number of days sales in inventory ratio.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for B76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Using these data from the comparative balance sheets of Concord Company, perform a vertical analysis. Accounts receivable (net) Inventory Total assets (Round percentages to 1 decimal place, e.g. 12.1%.) December 31, 2022 December 31, 2021 $418,320 $425,250 816,720 787,500 2,490,000 3,150,000 December 31, 2022 December 31, 2021 Amount Percentage Amount Percentage Accounts receivable (net) $418,320 % $425,250 % Inventory Total assets 816,720 % 787,500 % 2,490,000 % 3,150,000 %
Using these data from the comparative balance sheets of Bonita Company, perform a vertical analysis. Accounts receivable (net) Inventory Total assets (Round percentages to 1 decimal place, e.g. 12.1%.) Accounts receivable (net) Inventory Total assets Amount $435.960 December 31, 2022 December 31, 2021 $422,800 720.720 2.520,000 $435.960 December 31, 2022 720.720 2,520.000 Percentage 624,400 2,800,000 Amount $422,800 624,400 2.800,000 December 31, 2021 Percentage % 8