Statement of Cash Flows (Direct Method)The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below:WOLFF COMPANYIncome StatementFor the Year Ended December 31, 2013Sales Revenue$635,000Cost of Goods Sold$430,000Wages Expense86,000Insurance Expense8,000Depreciation Expense17,000Interest Expense9,000Income Tax Expense29,000 579,000Net Income$56,000WOLFF COMPANYBalance SheetsDec. 31, 2013 Dec. 31, 2012AssetsCash$11,000$5,000Accounts Receivable41,00032,000Inventory90,00060,000Prepaid Insurance5,0007,000Plant Assets250,000195,000Accumulated Depreciation(68,000)(51,000)Total Assets$329.000$248,000Liabilities and Stockholders' EquityAccounts Payable$7,000$10,0009,0006,000Wages PayableIncome Tax Payable7,0008,000Bonds Payable130,00075,000Common Stock90,00090,000Retained Earnings86,00059,000Total Liabilities and Stockholders' Equity$329,000$248,000Cash dividends of $29,000 were declared and paid during 2013. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases.Requireda. Calculate the change in cash that occurred during 2013.b. Prepare a statement of cash flows using the direct method.C. Compute free cash flow.1112 P

Statement of cash flow (CFS) refers to a financial statement which shows the flows of cash and cash…

Answered: Required a. Calculate the change in…

Required a. Calculate the change in cash that occurred during 2013. b. Prepare a statement of cash flows using the direct method, C. Compute free cash flow.

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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he comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: abels and Amount Descriptions Labels Dec. 31, Dec. 31, December 31, 20Y8 For the Year Ended December 31, 20Y8 Amount Descriptions Cash paid for equipment Cash received from issuing common 20Y8 20Υ7 12 Assets 3 Cash $145,670.00 $179,640.00 4 Accounts receivable (net) 225,480.00 241,430.00 stock 5 Merchandise inventory 320,660.00 298,210.00 Cash dividends 6 Prepaid expenses 12,990.00 8,900.00 Cash paid to retire mortgage note 7 Equipment 655,730.00 537,410.00 payable Decrease in merchandise inventory 8 Accumulated depreciation-equipment (171,620.00) (132,200.00) Total assets $1,188,910.00 $1,133,3 Decrease in accounts payable Decrease in accounts receivable 10 Liabilities and Stockholders' Equity Decrease in prepaid expenses Depreciation Increase in accounts payable 11 Accounts payable (merchandise creditors) $250,770.00 $237.180.00 12 Mortgage note payable 00 336,110.00 13 Common…
Which of the following items is deducted from net income to arrive at cash flow from operations when using the indirect method? a) Decrease in accounts payable b) Depreciation expense c) Amortization expense d) Decrease in accounts receivable
The is intended to reconcile changes in the balance sheet cash accounts. accounting statement of income accounting statement of changes in equity O capital budgeting cash flow calculation O accounting statement of cash flows Save for Later Attempts: 0 of 3 used Submit Answer
Explain the steps used to prepare the statement of cash flows.
Accounting Question
A measure that helps estimate the amount and timing of cash flows from operating activities is the cash flow on total assets ratio. True or False True False
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Help with part "a" please!
Provide iand Create nformation needed to create a Statement of Cash Flows using the Indirect Method. You MUST include: Net Income At least 3 items that go under operating activities. At least 2 items that go under investing activities. At least 2 items that go under financing activities. And 1 non-cash transaction.