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 Least 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 i Depreciation expense Other expenses Net income. Additional Data: a. Bought equipment for cash, $60,950. b. Paid $16,020 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $830 were declared and paid. Current Year Prior Year $ 66,200 $70,850 19,750 25,950 214,150 (63,400) $ 267,300 $13,500 4,500 60,180 104,200 84,920 $ 267,300 $213,000 110,000 15,450 44,800 $42,750 e. Other expenses all relate to wages, f. Accounts payable includes only inventory purchases made on credit. 25,950 20,800. 153,200 (47,950) $218,200 $23,000 7,400 76,200 67,800 43,000 $218,200 Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts.

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ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
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Chapter16: Financial Statement Analysis
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Subject: accounting 

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:
a. Bought equipment for cash, $60,950.
b. Paid $16,020 on the long-term note payable.
c. Issued new shares of stock for $36,400 cash.
d. Dividends of $830 were declared and paid.
Current Year
$70,850
19,750
25,950
214,150
(63,400)
$ 267,300
$13,500
4,500
60,180
104,200
84,920
$ 267,300
$ 213,000
110,000
15,450
44,800
$ 42,750
e. Other expenses all relate to wages.
1. Accounts payable includes only inventory purchases made on credit.
Prior Year
$ 66,200
25,950
20,800
153,200
(47,950)
$ 218,200
$23,000
7,400
76,200
67,800
43,000
$ 218,200
Required:
1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year.
Note: List cash outflows as negative amounts.
***
Alaud
Check my work
Transcribed Image Text: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: a. Bought equipment for cash, $60,950. b. Paid $16,020 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $830 were declared and paid. Current Year $70,850 19,750 25,950 214,150 (63,400) $ 267,300 $13,500 4,500 60,180 104,200 84,920 $ 267,300 $ 213,000 110,000 15,450 44,800 $ 42,750 e. Other expenses all relate to wages. 1. Accounts payable includes only inventory purchases made on credit. Prior Year $ 66,200 25,950 20,800 153,200 (47,950) $ 218,200 $23,000 7,400 76,200 67,800 43,000 $ 218,200 Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts. *** Alaud Check my work
SHARP SCREEN FILMS, INCORPORATED
Statement of Cash Flows
For the Year Ended December 31, Current Year
Cash flows from operating activities:
Cash flows from investing activities:
Cash flows from financing activities:
Transcribed Image Text:SHARP SCREEN FILMS, INCORPORATED Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities:
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