Financial Accounting
4th Edition
ISBN: 9781259307959
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
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Chapter 11, Problem 11.10E
To determine
Statement of
Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.
Cash flows from operating activities: These refer to the cash received or cash paid in day-to-day operating activities of a company.
Indirect method of cash flow from operating activities: Under this method, the following amounts are to be adjusted from the Net Income to calculate the net cash provided from operating activities.
- Deduct increase in current assets
- Deduct decrease in current liabilities
- Add decrease in current assets
- Add the increase in current liability
- Add
depreciation expense and amortization expense - Add loss on sale of plant assets
- Less gain on sale of plant assets
Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company.
Cash flow from financing activities: This section of cash flows statement provides information about the
To prepare: The statement of cash flow of Company P under indirect method.
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The balance sheets for Plasma Screens Corporation and additional information are provided below.
PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020
2021
2020
Assets
Current assets:
Cash
$
138,880
$
118,000
Accounts receivable
74,000
90,000
Inventory
93,000
78,000
Investments
3,800
1,800
Long-term assets:
Land
460,000
460,000
Equipment
770,000
650,000
Less: Accumulated depreciation
(408,000
)
(248,000
)
Total assets
$
1,131,680
$
1,149,800
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
97,600
$
83,000
Interest payable
5,500
11,800
Income tax payable
7,500
4,800
Long-term liabilities:
Notes payable
100,000
200,000
Stockholders' equity:
Common stock…
the balance sheets for Plasma Screens Corporation and additional information are provided below.
PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020
2021
2020
Assets
Current assets:
Cash
$
242,000
$
130,000
Accounts receivable
98,000
102,000
Inventory
105,000
90,000
Investments
5,000
3,000
Long-term assets:
Land
580,000
580,000
Equipment
890,000
770,000
Less: Accumulated depreciation
(528,000
)
(368,000
)
Total assets
$
1,392,000
$
1,307,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
109,000
$
95,000
Interest payable
7,000
13,000
Income tax payable
9,000
6,000
Long-term liabilities:
Notes payable
110,000
220,000
Stockholders' equity:
Common stock…
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
PLASMA SCREENS CORPORATIONBalance SheetsDecember 31, 2021 and 2020
2021
2020
Assets
Current assets:
Cash
$
146,750
$
159,000
Accounts receivable
76,000
89,500
Inventory
90,000
75,500
Prepaid rent
3,000
1,500
Long-term assets:
Land
455,000
455,000
Equipment
750,000
645,000
Accumulated depreciation
(415,000
)
(258,000
)
Total assets
$
1,105,750
$
1,167,500
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
94,000
$
80,500
Interest payable
6,750
13,500
Income tax payable
7,000
4,500
Long-term liabilities:
Notes payable
112,500
225,000
Stockholders' equity:
Common stock…
Chapter 11 Solutions
Financial Accounting
Ch. 11 - 1.Identify and briefly describe the three...Ch. 11 - Prob. 2RQCh. 11 - Explain what we mean by noncash activities and...Ch. 11 - Why is it necessary to use an income statement,...Ch. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Distinguish between the indirect method and the...Ch. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - 10.Explain how we report depreciation expense in...
Ch. 11 - Describe how we report a gain or loss on the sale...Ch. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 16RQCh. 11 - Prob. 17RQCh. 11 - Prob. 18RQCh. 11 - Prob. 19RQCh. 11 - 20.Why do we exclude depreciation expense and the...Ch. 11 - Classify each of the following items as an...Ch. 11 - Prob. 11.2BECh. 11 - Prob. 11.3BECh. 11 - Prob. 11.4BECh. 11 - Prob. 11.5BECh. 11 - Prob. 11.6BECh. 11 - Prob. 11.7BECh. 11 - Creative Sound Systems sold investments, land, and...Ch. 11 - Prob. 11.9BECh. 11 - Prob. 11.10BECh. 11 - Prob. 11.11BECh. 11 - Prob. 11.12BECh. 11 - Electronic Superstores inventory increases during...Ch. 11 - Prob. 11.14BECh. 11 - Computer World reports income tax expense of...Ch. 11 - Prob. 11.1ECh. 11 - Prob. 11.2ECh. 11 - Determine proper classification (LO111) Analysis...Ch. 11 - Prob. 11.4ECh. 11 - Prob. 11.5ECh. 11 - Prob. 11.6ECh. 11 - Technology Solutions format for the statement of...Ch. 11 - Prob. 11.8ECh. 11 - Prob. 11.9ECh. 11 - Prob. 11.10ECh. 11 - Prob. 11.11ECh. 11 - Prob. 11.12ECh. 11 - Prob. 11.13ECh. 11 - Prob. 11.14ECh. 11 - The income statement for Electronic Wonders...Ch. 11 - Prob. 11.1APCh. 11 - Prob. 11.2APCh. 11 - Prob. 11.3APCh. 11 - Prob. 11.4APCh. 11 - Cyberdyne Systems and Virtucon are competitors...Ch. 11 - Prob. 11.6APCh. 11 - Prob. 11.7APCh. 11 - Prob. 11.8APCh. 11 - Prob. 11.1BPCh. 11 - Prob. 11.2BPCh. 11 - Prob. 11.3BPCh. 11 - Preparing statement of cash flowsindirect method...Ch. 11 - International Genetic Technologies (InGen) and The...Ch. 11 - Prob. 11.6BPCh. 11 - Prob. 11.7BPCh. 11 - Cash flows from operating activities for both the...Ch. 11 - Great Adventures (This is a continuation of the...Ch. 11 - Prob. 11.2APFACh. 11 - Prob. 11.3APFACh. 11 - American Eagle Outfitters, Inc. vs. The Buckle,...Ch. 11 - Prob. 11.5APECh. 11 - Prob. 11.6APIRCh. 11 - Written Communication Why cant we pay our...Ch. 11 - Prob. 11.8APEM
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