Statement of Cash Flows The following is a list of items for Witts Company's 2016 statement of cash flows: a. receipt from sale of equipment, $2,700 b. increase in inventory, $3,900 c. net income, $13,500 d. payment for purchase of building, $29,000 e. depreciation expense, $8,700 f. receipt from issuance of bonds, $8,000 g. increase in prepaid expenses, $800 h. loss on sale of equipment, $2,200 i. payment of dividends, $5,200 j. decrease in accounts receivable, $1,700 k. issuance of common stock for land, $6,900 I. decrease in accounts payable, $1,500 m. beginning cash balance, $10,200 Required:
Statement of Cash Flows The following is a list of items for Witts Company's 2016 statement of cash flows: a. receipt from sale of equipment, $2,700 b. increase in inventory, $3,900 c. net income, $13,500 d. payment for purchase of building, $29,000 e. depreciation expense, $8,700 f. receipt from issuance of bonds, $8,000 g. increase in prepaid expenses, $800 h. loss on sale of equipment, $2,200 i. payment of dividends, $5,200 j. decrease in accounts receivable, $1,700 k. issuance of common stock for land, $6,900 I. decrease in accounts payable, $1,500 m. beginning cash balance, $10,200 Required:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 13P: Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income,...
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![Statement of Cash Flows
The following is a list of items for Witts Company's 2016 statement of cash flows:
a. receipt from sale of equipment, $2,700
b. increase in inventory, $3,900
c. net income, $13,500
d. payment for purchase of building, $29,000
e. depreciation expense, $8,700
f. receipt from issuance of bonds, $8,000
g. increase in prepaid expenses, $800
h. loss on sale of equipment, $2,200
i. payment of dividends, $5,200
j. decrease in accounts receivable, $1,700
k. issuance of common stock for land, $6,900
I. decrease in accounts payable, $1,500
m. beginning cash balance, $10,200
Required:
1. Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.
WITTS COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Operating Activities:
Adjustment for noncash income items:
Adjustments for cash flow effects
from working capital items:
Investing Activities:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1908dd21-cc72-4760-9c90-35855c870384%2F29482bf6-180d-4bfb-94ba-48fc871f7b5f%2Fgoz479s_processed.png&w=3840&q=75)
Transcribed Image Text:Statement of Cash Flows
The following is a list of items for Witts Company's 2016 statement of cash flows:
a. receipt from sale of equipment, $2,700
b. increase in inventory, $3,900
c. net income, $13,500
d. payment for purchase of building, $29,000
e. depreciation expense, $8,700
f. receipt from issuance of bonds, $8,000
g. increase in prepaid expenses, $800
h. loss on sale of equipment, $2,200
i. payment of dividends, $5,200
j. decrease in accounts receivable, $1,700
k. issuance of common stock for land, $6,900
I. decrease in accounts payable, $1,500
m. beginning cash balance, $10,200
Required:
1. Prepare the statement of cash flows. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.
WITTS COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Operating Activities:
Adjustment for noncash income items:
Adjustments for cash flow effects
from working capital items:
Investing Activities:
![Investing Activities:
Financing Activities:
Cash, January 1, 2016
Cash, December 31, 2016
2. If Witts Company uses IFRS, and chooses to show dividends as an operating activity, which of the following will result?
a. Witts Company would report net cash provided by operating activities of $25,100.
b. Witts Company would report net cash provided by operating activities of $14,700.
c. Witts Company would report net cash provided by financing activities of $2,800.
d. Witts Company would report net cash used by financing activities of $2,400.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1908dd21-cc72-4760-9c90-35855c870384%2F29482bf6-180d-4bfb-94ba-48fc871f7b5f%2F1ktxeyd_processed.png&w=3840&q=75)
Transcribed Image Text:Investing Activities:
Financing Activities:
Cash, January 1, 2016
Cash, December 31, 2016
2. If Witts Company uses IFRS, and chooses to show dividends as an operating activity, which of the following will result?
a. Witts Company would report net cash provided by operating activities of $25,100.
b. Witts Company would report net cash provided by operating activities of $14,700.
c. Witts Company would report net cash provided by financing activities of $2,800.
d. Witts Company would report net cash used by financing activities of $2,400.
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