Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 22, Problem 22.1P
Prepare Statement of Cash Flows, Direct Method. Shark Company provided the following balance sheet and income statement for the current year. Prepare the operating activities section of the cash flow statement using the direct method. Assume that accrued expenses relate to selling general and administrative expenses
Shark Company Balance Sheet At December 31 |
||||
Assets | Ending | Beginning | ||
Current Assets | ||||
Cash | $ 1,000 | $ 5,000 | ||
Accounts Receivable - net | 5,500 | 3,000 | ||
Merchandise Inventory | 4,000 | 1,800 | ||
Total Current Assets | $10,500 | $ 9,800 | ||
Noncurrent Assets | ||||
Investments in Bonds | $30,000 | $10,000 | ||
Property, Plant, and Equipment - net | $50,000 | $60,000 | ||
Total Noncurrent Assets | $80,000 | $70,000 | ||
Total Assets | $90,500 | $79,800 | ||
Liabilities | ||||
Current Liabilities |
Accounts Payable | $ 3,200 | $ 4,400 |
Accrued Expenses | 6,700 | 6,550 |
Income Taxes Payable | 1,500 | 2,450 |
Total Current Liabilities | $11,400 | $13,400 |
Noncurrent Liabilities | ||
Notes Payable | $35,000 | $28,000 |
Total Noncurrent Liabilities | $35,000 | $28,000 |
Total Liabilities | $46,400 | $41,400 |
Shareholders’ Equity | ||
Common Stock, $1 par value | $10,000 | $ 9,000 |
Additional Paid-in Capital in Excess of Par - Common | 15,334 | 12,000 |
18,766 | 17,400 | |
Total Shareholders’ Equity | $44,100 | $38,400 |
Total Liabilities and Shareholders’ Equity | $90,500 | $79,800 |
Shark Company Income Statement For the Year Ended December 31 |
|
Sales | $56,000 |
Cost of Goods Sold | 33,600 |
Gross Profit | $22,400 |
Selling. General, and Administrative Expenses | $11,600 |
Depreciation Expense | 6,000 |
Total Operating Expenses | $ 17,600 |
Operating Income | $ 4,800 |
Interest Expense | $(2,100) |
Income before Tax | $ 2,700 |
Income Tax Expense | (1,334) |
Net Income | $ 1,366 |
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Check out a sample textbook solutionChapter 22 Solutions
Intermediate Accounting
Ch. 22 - Prob. 22.1QCh. 22 - Prob. 22.2QCh. 22 - Prob. 22.3QCh. 22 - Prob. 22.4QCh. 22 - Prob. 22.5QCh. 22 - How do firms reclassify gains and losses on the...Ch. 22 - Prob. 22.7QCh. 22 - Prob. 22.8QCh. 22 - Prob. 22.9QCh. 22 - Prob. 22.10Q
Ch. 22 - Prob. 22.11QCh. 22 - What approach is used in preparing the operating...Ch. 22 - Under the indirect method, do firms subtract bond...Ch. 22 - Do firms subtract pension expense from net income...Ch. 22 - Prob. 22.15QCh. 22 - Prob. 22.16QCh. 22 - Prob. 22.1MCCh. 22 - Prob. 22.2MCCh. 22 - Big Dollars Corporation's comparative financial...Ch. 22 - Prob. 22.4MCCh. 22 - Prob. 22.5MCCh. 22 - Sykes Corporation's comparative balance sheets at...Ch. 22 - Prob. 22.7MCCh. 22 - Prob. 22.8MCCh. 22 - Prob. 22.1BECh. 22 - Prob. 22.2BECh. 22 - Prob. 22.3BECh. 22 - Prob. 22.4BECh. 22 - Prob. 22.5BECh. 22 - Prob. 22.6BECh. 22 - Prob. 22.7BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.9BECh. 22 - Prob. 22.10BECh. 22 - Prob. 22.11BECh. 22 - Prob. 22.12BECh. 22 - Prob. 22.13BECh. 22 - Operating Activities Section, Indirect Method,...Ch. 22 - Prob. 22.15BECh. 22 - Prob. 22.16BECh. 22 - Prob. 22.17BECh. 22 - Prob. 22.18BECh. 22 - Prob. 22.19BECh. 22 - Prob. 22.20BECh. 22 - Prob. 22.21BECh. 22 - Prob. 22.22BECh. 22 - Complex Transactions, Acquisitions and...Ch. 22 - Prob. 22.24BECh. 22 - Prob. 22.25BECh. 22 - Complex Transactions, Change in Accounts...Ch. 22 - Prob. 22.1ECh. 22 - Prob. 22.2ECh. 22 - Prob. 22.3ECh. 22 - Prob. 22.4ECh. 22 - Prob. 22.5ECh. 22 - Prob. 22.6ECh. 22 - Statement of Cash Flows, Indirect Method,...Ch. 22 - Prob. 22.8ECh. 22 - Prob. 22.9ECh. 22 - Prob. 22.10ECh. 22 - Statement of Cash Flows, Indirect Method....Ch. 22 - Prob. 22.15ECh. 22 - Prob. 22.16ECh. 22 - Prepare Statement of Cash Flows, Direct Method....Ch. 22 - Prob. 22.2PCh. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Statement of Cash Flows, Indirect Method, Complex...Ch. 22 - Prob. 22.11PCh. 22 - Prob. 22.12PCh. 22 - Prob. 22.13PCh. 22 - Prob. 22.14PCh. 22 - Prob. 1JCCh. 22 - Prob. 1FSACCh. 22 - Prob. 1SSCCh. 22 - Surfing the Standards Case 2: Cash Flow per Share...Ch. 22 - Basis for Conclusions Cases Basis for Conclusions...Ch. 22 - Basis for Conclusions Case 2: Indirect versus...
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