Refer to page 580, Exercise 11-10, Prepare the statement of cash flow using the indirect method.Edit View Insert Format Tools Table12pt vParagraph vBIUA画O words</>MacBook ProQ Search or enter website name#3$&3478.ERYUFGH JK< (O 580CHAPTER 11 Statement of Cash FlowsE11-11 PortCalculate operatingactivities-indirectmethod (LO11-3)decrease in inventory of $37,000, and an increase in accounts payable of $45.000Required:operating cash flows? What might this imply?Prepare a statementof cash flows-indirectare provided below:method (LO11-3, 11-4,11-5)PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 20202021not aleed o ane to ma trowo2020AssetsCashAccouInventPrepaCurrent assets:$ 108,900$ 126,800Cash82,000Accounts receivableInventory105,0006,00097,00089,0003,000Prepaid rentLong-term assets:LandIncom530,000530,000EquipmentAccumulated depreciationTotal assets830,000(438,000)$1,223,900720,000(288,000)$1,277,800RequiPreparthe incLiabilities and Stockholders' EquityCurrent liabilities:E11-1$ 109,000$ 94,000Accounts payableInterest payableIncome tax payableLong-term liabilities:Notes payableStockholders' equity:unless6,90013,800а. Аb. Ac10,0006,000c. Dr115,000230,000d. Lae. ACommon stock750,000750,000f. Ag. Nh. Ai. ARetained earningsTotal liabilities and stockholders' equity233,000$1,223,900184,000$1,277,800benupaRecAdditional Information for 2021:Cal1. Net income is $79,000.oniteogoE112. The company purchases $110,000 in equipment.3. Depreciation expense is $150,000. ni ns 0004. The company repays $115,000 in notes payable.bebol(-o borom000.052ReCaclaE15. The company declares and pays a cash dividend of $30,000.lupeRequired:SawollPrepare the statement of cash flows using the indirect method.

Name: Refer to page 580, Exercise 11-10, Prepare the statement of cash flow
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Description: Refer to page 580, Exercise 11-10, Prepare the statement of cash flow using the indirect method.Edit View Insert Format Tools Table12pt vParagraph vBIUA画O words MacBook ProQ Search or enter website name#3$&3478.ERYUFGH JK< (O 580CHAPTER 11 Stateme

There are mainly two methods of finding Income from Operation: Direct Method Indirect Method

Business

Accounting

rent assets: ash ccounts receivable ventory repaid rent g-term assets: and quipment ccumulated depreciation $ 108,900 $ 12 82,000 105,000 6,000 530,000 830,000 5. 7. (438,000) $1,223,900 $1,2 Total assets ilities and Stockholders' Equity ent liabilities: Counts pavable 2$ $ 109,000 2$

rent assets: ash ccounts receivable ventory repaid rent g-term assets: and quipment ccumulated depreciation $ 108,900 $ 12 82,000 105,000 6,000 530,000 830,000 5. 7. (438,000) $1,223,900 $1,2 Total assets ilities and Stockholders' Equity ent liabilities: Counts pavable 2$ $ 109,000 2$

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Refer to page 580, Exercise 11-10, Prepare the statement of cash flow using the indirect method.
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580
CHAPTER 11 Statement of Cash Flows
E11-11 Port
Calculate operating
activities-indirect
method (LO11-3)
decrease in inventory of $37,000, and an increase in accounts payable of $45.000
Required:
operating cash flows? What might this imply?
Prepare a statement
of cash flows-indirect
are provided below:
method (LO11-3, 11-4,
11-5)
PLASMA SCREENS CORPORATION
Balance Sheets
December 31, 2021 and 2020
2021
not aleed o an
e to ma t
rowo
2020
Assets
Cash
Accou
Invent
Prepa
Current assets:
$ 108,900
$ 126,800
Cash
82,000
Accounts receivable
Inventory
105,000
6,000
97,000
89,000
3,000
Prepaid rent
Long-term assets:
Land
Incom
530,000
530,000
Equipment
Accumulated depreciation
Total assets
830,000
(438,000)
$1,223,900
720,000
(288,000)
$1,277,800
Requi
Prepar
the inc
Liabilities and Stockholders' Equity
Current liabilities:
E11-1
$ 109,000
$ 94,000
Accounts payable
Interest payable
Income tax payable
Long-term liabilities:
Notes payable
Stockholders' equity:
unless
6,900
13,800
а. А
b. Ac
10,000
6,000
c. Dr
115,000
230,000
d. La
e. A
Common stock
750,000
750,000
f. A
g. N
h. A
i. A
Retained earnings
Total liabilities and stockholders' equity
233,000
$1,223,900
184,000
$1,277,800
benupa
Rec
Additional Information for 2021:
Cal
1. Net income is $79,000.
oniteogo
E11
2. The company purchases $110,000 in equipment.
3. Depreciation expense is $150,000. ni ns 000
4. The company repays $115,000 in notes payable.
bebol
(-o borom
000.052
Re
Ca
cla
E1
5. The company declares and pays a cash dividend of $30,000.
lupe
Required:
Sawoll
Prepare the statement of cash flows using the indirect method.

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