XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings Income Statement (Current year) Sales Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $13,750. b. Paid $13,500 on the long-term note payable. c. Issued new shares for $16,700 cash. d. No dividends were declared or paid. Current Year $ 32,400 $ 29,100 41,000 33,900 47,250 141,750 (40,350) $222,050 Cash flows from operating activities: Prior Year XS SUPPLY COMPANY Statement of Cash Flows i For the Year Ended December 31 $ 32,100 $ 45,200 960 31,600 1,550 45,100 96,300 79,600 47,990 40,250 $222,050 $198,600 $137,000 79,460 49,800 $ 7,740 39,600 128,000 (32,000) $198,600 e. Other expenses included depreciation, $8,350; wages, $23,200; taxes, $7,400; other, $10,850. 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 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
answer in text form please (without image)
XS Supply Company is developing its annual financial statements at December 31. The statements are complete
except for the statement of cash flows. The completed comparative balance sheets and income statement are
summarized:
Balance Sheet at December 31
Cash
Accounts Receivable
Merchandise Inventory
Property and Equipment
Less: Accumulated Depreciation
Accounts Payable
Wages Payable
Note Payable, Long-Term
Contributed Capital
Retained Earnings
Income Statement (Current year)
Sales
Cost of Goods Sold
Other Expenses
Net Income
Additional Data:
a. Bought equipment for cash, $13,750.
b. Paid $13,500 on the long-term note payable.
c. Issued new shares for $16,700 cash.
d. No dividends were declared or paid.
Current
Year
$ 32,400
41,000
47,250
Cash flows from 6perating activities:
141,750
(40,350)
$222,050
XS SUPPLY COMPANY
Statement of Cash Flows
For the Year Ended December 31
$ 45,200
960
31,600
96,300
47,990
$222,050
$137,000
79,460
49,800
$ 7,740
Prior Year
$ 29,100
33,900
39,600
128,000
(32,000)
$198,600
$ 32,100
1,550
45,100
e. Other expenses included depreciation, $8,350; wages, $23,200; taxes, $7,400; other, $10,850.
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,
79,600
40,250
$198,600
Required:
1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be
deducted should be indicated by a minus sign.)
Transcribed Image Text:XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 Cash Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation Accounts Payable Wages Payable Note Payable, Long-Term Contributed Capital Retained Earnings Income Statement (Current year) Sales Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $13,750. b. Paid $13,500 on the long-term note payable. c. Issued new shares for $16,700 cash. d. No dividends were declared or paid. Current Year $ 32,400 41,000 47,250 Cash flows from 6perating activities: 141,750 (40,350) $222,050 XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 $ 45,200 960 31,600 96,300 47,990 $222,050 $137,000 79,460 49,800 $ 7,740 Prior Year $ 29,100 33,900 39,600 128,000 (32,000) $198,600 $ 32,100 1,550 45,100 e. Other expenses included depreciation, $8,350; wages, $23,200; taxes, $7,400; other, $10,850. 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, 79,600 40,250 $198,600 Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Financial Statements
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education