Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Net increase in cash Cash balance, January 1, 2018 Cash balance, December 31, 20Y8 $186,540 18,400 (50,000) (25,370) (33,450) 41,070 (12,470) $280,000 (326,000) (152,000) $187,500 (91,200) $124,720 (198,000) 96,300 $23,020 585,920 $608,940
Statement of Cash Flows For the Year Ended December 31, 20Y8 Cash flows from (used for) operating activities: Net income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation Gain on sale of investments Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Increase in accounts payable Decrease in accrued expenses payable Net cash flow from operating activities Cash flows from (used for) investing activities: Cash received from sale of investments Cash paid for purchase of land Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash received from sale of common stock Cash paid for dividends Net cash flow from financing activities Net increase in cash Cash balance, January 1, 2018 Cash balance, December 31, 20Y8 $186,540 18,400 (50,000) (25,370) (33,450) 41,070 (12,470) $280,000 (326,000) (152,000) $187,500 (91,200) $124,720 (198,000) 96,300 $23,020 585,920 $608,940
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
Related questions
Question
![Your supervisor has provided you with the following statement of cash flows, prepared using the
indirect method. Recall that the statement of cash flows consists of three sections: cash flows from
operating activities, cash flows from investing activities, and cash flows from financing activities.
Review the statement, and then proceed to the next panel.
Championship Boxing, Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y8
Cash flows from (used for) operating activities:
Net income
$186,540
Adjustments to reconcile net income to net cash flow from operating
activities:
Depreciation
18,400
Gain on sale of investments
(50,000)
Changes in current operating assets and liabilities:
Increase in accounts receivable
(25,370)
Increase in inventories
(33,450)
Increase in accounts payable
41,070
Decrease in accrued expenses payable
(12,470)
Net cash flow from operating activities
$124,720
Cash flows from (used for) investing activities:
Cash received from sale of investments
$280,000
Cash paid for purchase of land
(326,000)
Cash paid for purchase of equipment
(152,000)
Net cash flow used for investing activities
(198,000)
Cash flows from (used for) financing activities:
Cash received from sale of common stock
$187,500
Cash paid for dividends
(91,200)
Net cash flow from financing activities
96,300
Net increase in cash
$23,020
Cash balance, January 1, 20Y8
585,920
Cash balance, December 31, 20Y8
$608,940](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f613ef6-bc77-4800-a43c-fcc1024de9ae%2Fe649f5e9-09f4-4c0f-8de0-4af9d01bd1ec%2F3sx0hk4_processed.png&w=3840&q=75)
Transcribed Image Text:Your supervisor has provided you with the following statement of cash flows, prepared using the
indirect method. Recall that the statement of cash flows consists of three sections: cash flows from
operating activities, cash flows from investing activities, and cash flows from financing activities.
Review the statement, and then proceed to the next panel.
Championship Boxing, Inc.
Statement of Cash Flows
For the Year Ended December 31, 20Y8
Cash flows from (used for) operating activities:
Net income
$186,540
Adjustments to reconcile net income to net cash flow from operating
activities:
Depreciation
18,400
Gain on sale of investments
(50,000)
Changes in current operating assets and liabilities:
Increase in accounts receivable
(25,370)
Increase in inventories
(33,450)
Increase in accounts payable
41,070
Decrease in accrued expenses payable
(12,470)
Net cash flow from operating activities
$124,720
Cash flows from (used for) investing activities:
Cash received from sale of investments
$280,000
Cash paid for purchase of land
(326,000)
Cash paid for purchase of equipment
(152,000)
Net cash flow used for investing activities
(198,000)
Cash flows from (used for) financing activities:
Cash received from sale of common stock
$187,500
Cash paid for dividends
(91,200)
Net cash flow from financing activities
96,300
Net increase in cash
$23,020
Cash balance, January 1, 20Y8
585,920
Cash balance, December 31, 20Y8
$608,940
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