Required:1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)Please assist. :) XS SUPPLY COMPANYStatement of Cash FlowsFor the Year Ended December 31Cash Flows from Operating Activities:Adjustments to Reconcile Net Income to Net CashProvided by Operating Activities:Changes in Current Assets and Current LiabilitiesCash Flows from Investing Activities:Cash Flows from Financing Activities:$00000 PA12-3 (Algo) Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5]XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for thestatement of cash flows. The completed comparative balance sheets and income statement are summarized:Balance Sheet at December 31CashAccounts ReceivableInventoryEquipmentAccumulated Depreciation-EquipmentTotal AssetsAccounts PayableSalaries and Wages PayableNotes Payable (long-term)Common StockRetained EarningsTotal Liabilities and Stockholders' EquityIncome StatementService RevenueCost of Goods SoldOther ExpensesNet IncomeAdditional Data:a. Bought equipment for cash, $24,000.b. Paid $6,600 on the long-term notes payable.c. Issued new shares of stock for $19,000 cash.Current Year$ 35,09036,20042,200130,000(31,200)$ 212,290$ 37,2001,09043,40092,20038,400$ 212,290$ 126,00073,00040,200$ 12,800Previous Year$ 30,15028,60038,600106,000(25,600)$ 177,750$ 27,6001,35050,00073,20025,600$ 177,750d. No dividends were declared or paid.e. Other expenses included depreciation, $5,600; salaries and wages, $20,600; taxes, $6,600; utilities, $7,400.f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes orother expenses, assume that these expenses were fully paid in cash.

Answer - Cashflow Using Indirect Method - Cashflow using Indirect Method starts with net income…

XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: $ 0 0 0 0 0

XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: $ 0 0 0 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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