The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:   Dec. 31, 20Y8 Dec. 31, 20Y7 Assets     Cash $76,950   $94,390   Accounts receivable (net) 118,230   127,250   Merchandise inventory 168,910   157,720   Prepaid expenses 6,880   4,780   Equipment 344,060   282,580   Accumulated depreciation-equipment (89,460)   (69,300)     Total assets $625,570   $597,420         Liabilities and Stockholders' Equity     Accounts payable (merchandise creditors) $131,370   $124,860   Mortgage note payable 0   179,230   Common stock, $1 par 21,000   13,000   Excess of paid-in capital over par 304,000   168,000   Retained earnings 169,200   112,330     Total liabilities and stockholders’ equity $625,570   $597,420   Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: Net income, $145,590. Depreciation reported on the income statement, $43,610. Equipment was purchased at a cost of $84,930, and fully depreciated equipment costing $23,450 was discarded, with no salvage realized. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. 8,000 shares of common stock were issued at $18 for cash. Cash dividends declared and paid, $88,720. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Orange Angel Enterprises Inc.Statement of Cash FlowsFor the Year Ended December 31, 20Y8 Cash flows from (used for) operating activities: blank     $- Select -   Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank     - Select -   Changes in current operating assets and liabilities: blank     - Select -     - Select -     - Select -     - Select -   Net cash flows from operating activities blank $fill in the blank 13 Cash flows from (used for) investing activities: blank     $- Select -   Net cash flows used for investing activities blank fill in the blank 16 Cash flows from (used for) financing activities: blank     $- Select -     - Select -     - Select -   Net cash flows from financing activities blank fill in the blank 23     blank $- Select - Cash balance, January 1, 20Y8 blank fill in the blank 26 Cash balance, December 31, 20Y8 blank $fill in the blank 27

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Statement of Cash Flows

The comparative balance sheet of Orange Angel Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

  Dec. 31, 20Y8 Dec. 31, 20Y7
Assets    
Cash $76,950   $94,390  
Accounts receivable (net) 118,230   127,250  
Merchandise inventory 168,910   157,720  
Prepaid expenses 6,880   4,780  
Equipment 344,060   282,580  
Accumulated depreciation-equipment (89,460)   (69,300)  
  Total assets $625,570   $597,420  
     
Liabilities and Stockholders' Equity    
Accounts payable (merchandise creditors) $131,370   $124,860  
Mortgage note payable 0   179,230  
Common stock, $1 par 21,000   13,000  
Excess of paid-in capital over par 304,000   168,000  
Retained earnings 169,200   112,330  
  Total liabilities and stockholders’ equity $625,570   $597,420  

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

  1. Net income, $145,590.
  2. Depreciation reported on the income statement, $43,610.
  3. Equipment was purchased at a cost of $84,930, and fully depreciated equipment costing $23,450 was discarded, with no salvage realized.
  4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
  5. 8,000 shares of common stock were issued at $18 for cash.
  6. Cash dividends declared and paid, $88,720.

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Orange Angel Enterprises Inc.Statement of Cash FlowsFor the Year Ended December 31, 20Y8

Cash flows from (used for) operating activities: blank  
 
$- Select -  
Adjustments to reconcile net income to net cash flows from (used for) operating activities: blank  
 
- Select -  
Changes in current operating assets and liabilities: blank  
 
- Select -  
 
- Select -  
 
- Select -  
 
- Select -  
Net cash flows from operating activities blank $fill in the blank 13
Cash flows from (used for) investing activities: blank  
 
$- Select -  
Net cash flows used for investing activities blank fill in the blank 16
Cash flows from (used for) financing activities: blank  
 
$- Select -  
 
- Select -  
 
- Select -  
Net cash flows from financing activities blank fill in the blank 23
 
 
blank $- Select -
Cash balance, January 1, 20Y8 blank fill in the blank 26
Cash balance, December 31, 20Y8 blank $fill in the blank 27
Expert Solution
Step 1: Defining cash flow statement

The cash flow statement is part of the financial statements of the company. It is prepared at the end of the accounting period by the management. It indicates cash inflow and cash outflow transactions of the year and can be prepared by using direct and indirect methods. 

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