Based on the income statement, balanced sheet, and additional information shown below and the statement of cash flows you prepared on your scratch paper, how much did the actual cash account change over this period?
Based on the income statement, balanced sheet, and additional information shown below and the statement of cash flows you prepared on your scratch paper, how much did the actual cash account change over this period?
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter6: Statement Of Cash Flows
Section: Chapter Questions
Problem 24E
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Question
Based on the income statement, balanced sheet, and additional information shown below and the statement of cash flows you prepared on your scratch paper, how much did the actual cash account change over this period?
Transcribed Image Text:Total Expenses
Operating Incone
Gain on sale of Bquipment
Net Income
105,000
145,000
25,000
170,000
Balance Sheet
UCF Bicycle Vending Machine Company
December 31, 20x
Current
Year
Prior Year
Change
Assets
Current Assets
Cash
175,000
50,000
125,000
Accounts Receivable
140,000
150,000
(10,000)
Inventory
Long-term Assets
Equipment*
Total Assets
330,000
300,000
30,000
450,000
500,000
(50,000)
1,095.000
1,000,000
Liabilities and Stockholders' Equity
Current Liabilities.
Accounts Payable
155,000
300,000
(145,000)
Deferred Revenue
225.000
200.000
25,000
(25.000)
Warranty Payable
Long-term Liabilities
Long-term Debr**
Stockholders' Equity
25,000
50,000
300,000
250,000
50,000
Common Stock*
Retained Earning****
Total Liabilities and Stockholders' Equity
50.000
140,000
150.000
100,000
240,000
100.000
1.095.000
1.000.000
$50.000 of equpment was sold for cash durine the year.
** New $50,000 noles payable wIs smed in exclange for cash ding the year,
***New stock was issued diring the year for cash in the amount of $50.000.
****Dividends paid during the year equaled $30.000,
Transcribed Image Text:Statement of Cash Flows - four (4) questions
Instructions: Please use the indirect method to prepare a Statement of Cash Flows on your scratch paper based on the following Income
Statement, Balance Sheet, and Additional Information shown below to answer this question and the next three (3) questions:
Question: Based on the Statement of Cash Flows you prepared on your scratch paper, what is the amount of the Operating cash flows?
Income Statement
UCF Bicycle Vending Machine Company
For Period Ending December 31, 20xx
Revenue
1,000,000
Cost of goods sold
750,000
Gross Profit
250,000
Expenses:
Depreciation Expense
Sales, General & Administrative Expenses
Total Expenses
25.000
80,000
105,000
145.000
Operating Income
Gain on sale of Equipment
25,000
Net income
170.000
Balance Sheet
UCF Bicycle Vending Machine Company
December 31, 20xx
Current
Year
Prior Year
Change
Assets
Current Assets
Casli
175.000
50.000
125.000
Accounts Receivable
140.000
150.000
(10.000)
W
Expert Solution
Step 1
Cash flows refers to the net amount of cash and cash equivalents rotating in and out of the business in a desired period of time. It specifies the profitability of a company derived from its ability to generate positive cash flows in the long run of the business.
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