Statement of Cash Flows (Indirect Method)Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method:Accounts payable decrease$7,000Accounts receivable increase9,800Wages payable decrease4,200Amortization expense22,400Cash balance, January 142,000Cash balance, December 319,800Cash paid as dividends8,400Cash paid to purchase land140,000Cash paid to retire bonds payable at par105,000Cash received from issuance of common stock63,000Cash received from sale of equipment16,800Depreciation expense54,600Gain on sale of equipment19,600Inventory increase18,200Net income134,400Prepaid expenses increase11,200 Remember to use negative signs with answers when appropriate.NEWCASTLE CORPORATIONStatement of Cash FlowsFor Year Ended December 31Cash Flow from Operating ActivitiesNet IncomeAnswerAdd (deduct) items to convert net income to cash basisDepreciationAnswerAmortizationAnswerGain on Sale of EquipmentAnswerAccounts Receivable IncreaseAnswerInventory IncreaseAnswerPrepaid Expenses IncreaseAnswerAccounts Payable DecreaseAnswerWages Payable DecreaseAnswerCash Flow Provided by Operating ActivitiesAnswerCash Flow from Investing ActivitiesSale of EquipmentAnswerPurchase of LandAnswerCash Used by Investing ActivitiesAnswerCash Flow from Financing ActivitiesIssuance of Common StockAnswerRetirement of Bonds PayableAnswerPayment of DividendsAnswerCash Used by Financing ActivitiesAnswerNet Decrease in CashAnswerCash at Beginning of YearAnswerCash at End of YearAnswer

Profit and loss account, balance sheet and cash flow statements are the three main financial…

Answered: Use the following information regarding…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Statement of Cash Flows (Indirect Method)
Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method:

Accounts payable decrease	$7,000
Accounts receivable increase	9,800
Wages payable decrease	4,200
Amortization expense	22,400
Cash balance, January 1	42,000
Cash balance, December 31	9,800
Cash paid as dividends	8,400
Cash paid to purchase land	140,000
Cash paid to retire bonds payable at par	105,000
Cash received from issuance of common stock	63,000
Cash received from sale of equipment	16,800
Depreciation expense	54,600
Gain on sale of equipment	19,600
Inventory increase	18,200
Net income	134,400
Prepaid expenses increase	11,200

Remember to use negative signs with answers when appropriate.

NEWCASTLE CORPORATION Statement of Cash Flows For Year Ended December 31
Cash Flow from Operating Activities
Net Income	Answer
Add (deduct) items to convert net income to cash basis
Depreciation	Answer
Amortization	Answer
Gain on Sale of Equipment	Answer
Accounts Receivable Increase	Answer
Inventory Increase	Answer
Prepaid Expenses Increase	Answer
Accounts Payable Decrease	Answer
Wages Payable Decrease	Answer
Cash Flow Provided by Operating Activities	Answer
Cash Flow from Investing Activities
Sale of Equipment	Answer
Purchase of Land	Answer
Cash Used by Investing Activities	Answer
Cash Flow from Financing Activities
Issuance of Common Stock	Answer
Retirement of Bonds Payable	Answer
Payment of Dividends	Answer
Cash Used by Financing Activities	Answer
Net Decrease in Cash	Answer
Cash at Beginning of Year	Answer
Cash at End of Year	Answer

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions