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 Additional data: b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. Current Year Prior Year $ 34,200 35,500 40,000 121,200 (30,500) $ 200,400 XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: $36,400 1,600 43,100 89,400 29,900 $ 200,400 $ 122,000 1,000 72,000 39,000 $ 12,000 $ 29,200 28,600 38,200 100,700 (25,200) a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. $ 171,500 $ 27,700 1,700 51,400 72,800 17,900 $ 171,500 d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. 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. 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. < Prev 7 of 7 www Next >
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 Additional data: b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. Current Year Prior Year $ 34,200 35,500 40,000 121,200 (30,500) $ 200,400 XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: $36,400 1,600 43,100 89,400 29,900 $ 200,400 $ 122,000 1,000 72,000 39,000 $ 12,000 $ 29,200 28,600 38,200 100,700 (25,200) a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. $ 171,500 $ 27,700 1,700 51,400 72,800 17,900 $ 171,500 d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. 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. 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. < Prev 7 of 7 www Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Additional data:
b. Paid $8,300 on the long-term note payable.
c. Issued new shares of stock for $16,600 cash.
Current Year
$ 34,200
35,500
40,000
121,200
(30,500)
$ 200,400
$36,400
1,600
43,100
89,400
29,900
$ 200,400
$ 122,000
1,000
72,000
39,000
$ 12,000
XS SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended December 31, Current Year
Cash flows from operating activities:
Prior Year
$ 29,200
a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for
$4,000 cash.
28,600
38,200
100,700
(25,200)
$ 171,500
$ 27,700
1,700
51,400
72,800
17,900
$ 171,500
d. No dividends were declared or paid.
e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300.
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.
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.
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Transcribed Image Text: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.
XS SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended December 31, Current Year
Cash flows from operating activities:
Adjustments to reconcile net income to net cash provided
by operating activities:
Cash flows from investing activities:
Cash flows from financing activities:
+
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