Required: Using the balance sheet and income statement above, complete the operating section worksheet, a complete statement of cash flows using the indirect method, and a complete statement of cash flows using the direct method.
Required: Using the balance sheet and income statement above, complete the operating section worksheet, a complete statement of cash flows using the indirect method, and a complete statement of cash flows using the direct method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Western Resources | Western Resources | |||||||
Income Statement | ||||||||
At December 31, 20X5 | For the Period Ended December 31, 20X5 | |||||||
Assets | 20X5 | 20X4 | ||||||
Current assets | Sales Revenue | $ | 34,000,000 | |||||
Cash | $ | 900,000 | $ | 255,000 | Cost of Goods Sold | (29,500,000) | ||
100,000 | 2,500,000 | Gross Profit | $ | 4,500,000 | ||||
Allowance for Doubftul Accounts | (10,000) | (250,000) | ||||||
Inventory | 7,200,000 | 1,950,000 | Operating Expenses: | |||||
Prepaid Rent | 710,000 | 860,000 | Rent Expense | $ | (800,000) | |||
Long-term assets | Utilities Expense | (150,000) | ||||||
Land | $ | 3,975,000 | 4,200,000 | (1,250,000) | ||||
Buildings and Equipment | 8,250,000 | 8,750,000 | Bad Debts Expense | (160,000) | ||||
(4,250,000) | (3,550,000) | Total Operating Expenses | $ | (2,360,000) | ||||
Total assets | $ | 16,875,000 | $ | 14,715,000 | ||||
Liabilities and |
Other: | |||||||
Current liabilities | Interest Expense | $ | (640,000) | |||||
Accounts payable | $ | 2,850,000 | $ | 1,100,000 | Loss on Sale of Building | (100,000) | ||
Interest payable | 490,000 | 400,000 | Gain on Sale of Land | 400,000 | ||||
Income taxes payable | 80,000 | 310,000 | ||||||
Dividends payable | 12,000 | 55,000 | Income Before Income Taxes | $ | 1,800,000 | |||
Long-term liabilities | Income Tax Expense | (720,000) | ||||||
Long-term debt | $ | 2,600,000 | 4,000,000 | Net Income | $ | 1,080,000 | ||
Stockholders' Equity | ||||||||
Common stock | $ | 6,675,000 | 5,600,000 | |||||
4,168,000 | 3,250,000 | |||||||
Total liabilities and shareholders' equity | $ | 16,875,000 | $ | 14,715,000 |
Additional information: The following
Building 700,000
Common Stock 700,000
Required: Using the balance sheet and income statement above, complete the operating section worksheet, a complete statement of
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Complete the investing and financing sections of the statement of cash flows below.
Western Resources
Statement of Cash Flows (Investing and Financing Sections)
For the Period Ended Dec. 31, 20X5
Cash Flows from Investing Activities
Net Cash Inflow(Outflow) Investing Activities
$
Cash Flows from Financing Activities
Net Cash Inflow/(Outflow) Financing Activities
$
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Transcribed Image Text:Requirement
Complete the investing and financing sections of the statement of cash flows below.
Western Resources
Statement of Cash Flows (Investing and Financing Sections)
For the Period Ended Dec. 31, 20X5
Cash Flows from Investing Activities
Net Cash Inflow(Outflow) Investing Activities
$
Cash Flows from Financing Activities
Net Cash Inflow/(Outflow) Financing Activities
$
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