Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
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Chapter 14, Problem 46P
The following financial statements were provided by Roberts Company:
At the end of 20X2, Roberts purchased some additional equipment for $20,000.
Required:
Prepare a statement of
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Shim Company presents its statement of cash flows using the indirect method.
The following accounts and corresponding balances were drawn from Shim’s Year 2 and Year 1 year-end balance sheets. (see below).
The income statement reported a $2,280 gain on the sale of equipment, an $810 loss on the sale of land, and $4,200 of depreciation expense. Net income for the period was $45,800.
Requirements:
Prepare the operating activities section of the statement of cash flows.
Account
Year 2
Year 1
Accounts Receivable
31,200.00
35,000.00
Prepaid Rent
1,453.00
1,100.00
Interest Receivable
650.00
600.00
Accounts Payable
9,876.00
12,200.00
Salaries Payable
2,625.00
2,000.00
Unearned Revenue
3,237.00
4,470.00
Shim Company
Cash from Operating Activities
Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The
statement of cash flows is not required.) (Enter all amounts as positive values.)
Additional information:
a. Net income for the year was $105,000.
b. Dividends of $90,000 cash were declared and paid.
c. The only noncash expense was $75,000 of depreciation.
d. Purchased plant assets for $95,000 cash.
e. Notes payable of $25,000 were issued for $25,000 cash.
f. $55,000 increase in accounts receivable.
g. $35,000 decrease in inventory.
h. $15,000 decrease in accounts payable.
Balance Sheet-Debit Balance Accounts
Cash
Accounts receivable
Inventory
Plant assets
Balance Sheet-Credit Balance Accounts
Accumulated depreciation
Accounts payable
Notes payable
Common stock
Retained earnings
Statement of Cash Flows
Operating activities
SCORETECK CORPORATION
Spreadsheet for Statement of Cash Flows-Indirect Method
For Year Ended December 31, 2021
Investing activities
Financing activities…
An analysis of the general ledger accounts indicates that delivery equipment, which cost P80,000 and on which accumulated depreciationtotaled 36,000 on the date of sale, was sold for P37,200 during the year. Using this information, indicate the items to be reported on thestatement of cash flows
Chapter 14 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Of the three categories on the statement of cash...Ch. 14 - Prob. 4DQCh. 14 - Why is it better to report the noncash investing...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Explain how a company can report a loss and still...Ch. 14 - In computing the periods net operating cash flows,...Ch. 14 - Prob. 10DQ
Ch. 14 - In computing the periods net operating cash flows,...Ch. 14 - Explain the reasoning for including the payment of...Ch. 14 - What are the advantages in using worksheets when...Ch. 14 - Prob. 14DQCh. 14 - Cash inflows from operating activities come from...Ch. 14 - Prob. 2MCQCh. 14 - Prob. 3MCQCh. 14 - Sources of cash include a. profitable operations....Ch. 14 - Uses of cash include a. cash dividends. b. the...Ch. 14 - Prob. 6MCQCh. 14 - Prob. 7MCQCh. 14 - Which of the following adjustments to net income...Ch. 14 - An increase in accounts receivable is deducted...Ch. 14 - An increase in inventories is deducted from net...Ch. 14 - The gain on sale of equipment is deducted from net...Ch. 14 - Which of the following is an investing activity?...Ch. 14 - Which of the following is a financing activity? a....Ch. 14 - Prob. 14MCQCh. 14 - A worksheet approach to preparing the statement of...Ch. 14 - In a completed worksheet, a. the debit column...Ch. 14 - Prob. 17BEACh. 14 - Prob. 18BEACh. 14 - Prob. 19BEACh. 14 - Prob. 20BEACh. 14 - Swasey Company earned net income of 1,800,000 in...Ch. 14 - Prob. 22BEACh. 14 - Prob. 23BEACh. 14 - During 20X2, Norton Company had the following...Ch. 14 - Prob. 25BEBCh. 14 - Prob. 26BEBCh. 14 - Roberts Company provided the following partial...Ch. 14 - Prob. 28BEBCh. 14 - Prob. 29BEBCh. 14 - Prob. 30BEBCh. 14 - Prob. 31BEBCh. 14 - During 20X2, Evans Company had the following...Ch. 14 - Stillwater Designs is a private company and...Ch. 14 - Prob. 34ECh. 14 - Jarem Company showed 189,000 in prepaid rent on...Ch. 14 - During the year, Hepworth Company earned a net...Ch. 14 - During 20X1, Craig Company had the following...Ch. 14 - Tidwell Company experienced the following during...Ch. 14 - Prob. 39ECh. 14 - Oliver Company provided the following information...Ch. 14 - Prob. 41ECh. 14 - Prob. 42ECh. 14 - Prob. 43ECh. 14 - Solpoder Corporation has the following comparative...Ch. 14 - Solpoder Corporation has the following comparative...Ch. 14 - The following financial statements were provided...Ch. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Booth Manufacturing has provided the following...Ch. 14 - The following balance sheets and income statement...Ch. 14 - The following balance sheets and income statement...Ch. 14 - Balance sheets for Brierwold Corporation follow:...Ch. 14 - Balance sheets for Brierwold Corporation follow:...Ch. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - The following balance sheets were taken from the...Ch. 14 - The following balance sheets were taken from the...Ch. 14 - The comparative balance sheets and income...
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- Thompson Company sold a piece of equipment that had an original cost of 22,000 and a carrying value of 10,000 for 13,000 in cash. How would this information be reported on a statement of cash flows prepared using the indirect method?arrow_forwardNanning Company reports net income of $96,100. The accounting records reveal Depreciation Expense of $51,200 as well as increases in Prepaid Rent, Accounts Payable, and Income Tax Payable of $38,800, $23,400, and $21,600, respectively. Required: Prepare the operating activities section of Electronic Wonders' statement of cash flows using the indirect method. (Amounts to be deducted and negative values should be indicated by a minus sign.) NANNING COMPANY Statement of Cash Flows (partial) Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in current assets and current liabilities: Net cash flows from operating activitiesarrow_forwardHarrison Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information: Net cash provided by operating activities: $109,000 Net cash used for investing activities: $(115,500) Net cash provided by financing activities: $18,000 If the cash balance at the beginning of the year was $13,200, what is the ending cash balance? A $ 13,200.00 B $ 6,500.00 C $ 24,700.00 D $ 11,500.00arrow_forward
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