The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $95,000.00 $110,000.00 4 Accounts receivable (net) 260,000.00 280,000.00 5 Inventories 520,000.00 450,000.00 6 Prepaid expenses 15,000.00 5,000.00 7 Equipment 1,130,000.00 800,000.00 8 Accumulated depreciation-equipment (235,000.00) (190,000.00) 9 Total assets $1,785,000.00 $1,455,000.00 10 Liabilities and Stockholders’ Equity 11 Accounts payable (merchandise creditors) $100,000.00 $75,000.00 12 Mortgage note payable 0.00 500,000.00 13 Common stock, $10 par 500,000.00 200,000.00 14 Paid-in capital in excess of par—common stock 400,000.00 100,000.00 15 Retained earnings 785,000.00 580,000.00 16 Total liabilities and stockholders’ equity $1,785,000.00 $1,455,000.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $250,000. b. Depreciation reported on the income statement, $135,000. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 30,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $45,000. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7 2 Assets 3 Cash $95,000.00 $110,000.00 4 Accounts receivable (net) 260,000.00 280,000.00 5 Inventories 520,000.00 450,000.00 6 Prepaid expenses 15,000.00 5,000.00 7 Equipment 1,130,000.00 800,000.00 8 Accumulated depreciation-equipment (235,000.00) (190,000.00) 9 Total assets $1,785,000.00 $1,455,000.00 10 Liabilities and Stockholders’ Equity 11 Accounts payable (merchandise creditors) $100,000.00 $75,000.00 12 Mortgage note payable 0.00 500,000.00 13 Common stock, $10 par 500,000.00 200,000.00 14 Paid-in capital in excess of par—common stock 400,000.00 100,000.00 15 Retained earnings 785,000.00 580,000.00 16 Total liabilities and stockholders’ equity $1,785,000.00 $1,455,000.00 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $250,000. b. Depreciation reported on the income statement, $135,000. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 30,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $45,000. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.1KTQ
Related questions
Question
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
1
|
|
Dec. 31, 20Y8
|
Dec. 31, 20Y7
|
2
|
Assets
|
|
|
3
|
Cash
|
$95,000.00
|
$110,000.00
|
4
|
Accounts receivable (net)
|
260,000.00
|
280,000.00
|
5
|
Inventories
|
520,000.00
|
450,000.00
|
6
|
Prepaid expenses
|
15,000.00
|
5,000.00
|
7
|
Equipment
|
1,130,000.00
|
800,000.00
|
8
|
|
(235,000.00)
|
(190,000.00)
|
9
|
Total assets
|
$1,785,000.00
|
$1,455,000.00
|
10
|
Liabilities and
|
|
|
11
|
Accounts payable (merchandise creditors)
|
$100,000.00
|
$75,000.00
|
12
|
Mortgage note payable
|
0.00
|
500,000.00
|
13
|
Common stock, $10 par
|
500,000.00
|
200,000.00
|
14
|
Paid-in capital in excess of par—common stock
|
400,000.00
|
100,000.00
|
15
|
|
785,000.00
|
580,000.00
|
16
|
Total liabilities and stockholders’ equity
|
$1,785,000.00
|
$1,455,000.00
|
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:
a. Net income, $250,000. | |
b. Depreciation reported on the income statement, $135,000. | |
c. Equipment was purchased at a cost of $420,000 and fully |
|
d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. | |
e. 30,000 shares of common stock were issued at $20 for cash. | |
f. Cash dividends declared and paid, $45,000. |
Prepare a statement of cash flows , using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows , cash payments, decreases in cash, or any negative adjustments.
Labels and Amount Descriptions
|
|
Cash paid for dividends | |
Cash paid for equipment | |
Cash paid for merchandise | |
Cash paid for purchase of land | |
Cash paid to retire mortgage note payable | |
Cash received from customers | |
Cash received from sale of common stock | |
December 31, 20Y8 | |
Decrease in inventories | |
Decrease in accounts payable | |
Decrease in accounts receivable | |
Decrease in prepaid expenses | |
Depreciation | |
For the Year Ended December 31, 20Y8 | |
Gain on disposal of equipment | |
Gain on sale of investments | |
Increase in accounts payable | |
Increase in accounts receivable | |
Increase in inventories | |
Increase in prepaid expenses | |
Loss on disposal of equipment | |
Loss on sale of investments | |
Net cash flow from financing activities | |
Net cash flow from investing activities | |
Net cash flow from operating activities | |
Net cash flow used for financing activities | |
Net cash flow used for investing activities | |
Net cash flow used for operating activities | |
Net decrease in cash | |
Net income | |
Net increase in cash | |
Net loss |
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
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