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XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 40,000 121,200 28,600 38,200 100,700 (25,200) (30,500) $ 200,400 $ 171,500 $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 $ 36,400 1,600 43,100 89,400 72,800 29,900 17,900 $ 200,400 $ 171,500 Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. £ Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes o other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: Lift carh outflow or nogative amountr

XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 40,000 121,200 28,600 38,200 100,700 (25,200) (30,500) $ 200,400 $ 171,500 $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 $ 36,400 1,600 43,100 89,400 72,800 29,900 17,900 $ 200,400 $ 171,500 Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. £ Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes o other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: Lift carh outflow or nogative amountr

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 28,600 40,000 38,200 100, 700 (25,200) $ 171,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Increase in merchandise inventory Increase in accounts payable Decrease in wages payable d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase equipment Cash received from sale of equipment 121,200 (30,500) f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock $ 200,400 Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: List cash outflows as negative amounts. Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $36,400 1,600 43,100 89,400 29,900 $ 200,400 $ $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 72,800 17,900 $ 171,500 14,300 (6,900) (1,800) 8,700 (100) (32,500) 4,000 (8,300) 16,600 $ 12,000 $ 14,200 26,200 (28,500) 8,300 5,000 29,200 34,200
Transcribed Image Text:XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 28,600 40,000 38,200 100, 700 (25,200) $ 171,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Increase in merchandise inventory Increase in accounts payable Decrease in wages payable d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase equipment Cash received from sale of equipment 121,200 (30,500) f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock $ 200,400 Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: List cash outflows as negative amounts. Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $36,400 1,600 43,100 89,400 29,900 $ 200,400 $ $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 72,800 17,900 $ 171,500 14,300 (6,900) (1,800) 8,700 (100) (32,500) 4,000 (8,300) 16,600 $ 12,000 $ 14,200 26,200 (28,500) 8,300 5,000 29,200 34,200
XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 28,600 40,000 38,200 100, 700 (25,200) $ 171,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Increase in merchandise inventory Increase in accounts payable Decrease in wages payable d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase equipment Cash received from sale of equipment 121,200 (30,500) f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock $ 200,400 Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: List cash outflows as negative amounts. Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $36,400 1,600 43,100 89,400 29,900 $ 200,400 $ $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 72,800 17,900 $ 171,500 14,300 (6,900) (1,800) 8,700 (100) (32,500) 4,000 (8,300) 16,600 $ 12,000 $ 14,200 26,200 (28,500) 8,300 5,000 29,200 34,200
Transcribed Image Text:XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 28,600 40,000 38,200 100, 700 (25,200) $ 171,500 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Increase in accounts receivable Increase in merchandise inventory Increase in accounts payable Decrease in wages payable d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase equipment Cash received from sale of equipment 121,200 (30,500) f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock $ 200,400 Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: List cash outflows as negative amounts. Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $36,400 1,600 43,100 89,400 29,900 $ 200,400 $ $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 72,800 17,900 $ 171,500 14,300 (6,900) (1,800) 8,700 (100) (32,500) 4,000 (8,300) 16,600 $ 12,000 $ 14,200 26,200 (28,500) 8,300 5,000 29,200 34,200
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