Required:1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method.Note: List cash outflows as negative amounts.BGP ELECTRICAL SUPPLYStatement of Cash FlowsFor the Year Ended December 31, Current YearCash flows from operating activities:Adjustments to reconcile net income to net cash providedby operating activities:Cash flows from investing activities:Cash flows from financing activities: WBGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete exceptfor the statement of cash flows. The completed comparative balance sheets and income statement are summarized:Balance sheet at December 31CashAccounts receivableMerchandise inventoryProperty and equipment.Less: Accumulated depreciationAccounts payableAccrued wages expenseNote payable, long-termCommon stock and additional paid-in capital.Retained earningsIncome statement for current yearSalesCost of goods soldOther expensesNet incomeAdditional Data:Current Year Prior Year$ 29,400$ 37,30032,70028,90038,300100,800(25,300)42,000121,500(30,700)$ 202,800$36,7001,40044,50089,60030,600$ 202,800Cash flows from operating activities:$ 123,00073,00038,100$ 11,900BGP ELECTRICAL SUPPLYStatement of Cash FlowsFor the Year Ended December 31, Current Year$ 172,100a. Bought equipment for cash, $20,700.b. Paid $6,300 on the long-term note payable.c. Issued new shares of stock for $16,700 cash.d. No dividends were declared or paid.e. Other expenses included depreciation, $5,400; wages, $20,200; taxes, $6,500; other, $6,000.f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes orother expenses, assume that these expenses were fully paid in cash.$ 27,9001,80050,80072,90018,700$ 172,100Required:1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method.Note: List cash outflows as negative amounts.< Prev5 of 7#Next >

Cash flow statement: A cash flow statement provides data regarding all cash inflows a company…

Answered: Required: 1. Prepare the statement of…

Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: List cash outflows as negative amounts.

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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Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Additional Data: Current Year $ 67,850 20,250 26,450 214,450 (63,800) $ 265,200 $ 13,800 5,600 64,500 104,900 76,400 $ 265,200 $ 215,000 112,000 15,450 45,000 $ 42,550 a. Bought equipment for cash, $60,950. b. Paid $11,900 on the long-term note payable. c. Issued new shares of stock for $36,900 cash. d. Dividends of $10,450 were declared and paid. e. Other expenses all relate…
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