Indirect Method- Preparing a Statement of Cash FlowsCalex Inc. reported the following December 31 comparative balance sheets.Balance SheetsCash and cash equivalentsAccounts receivableEquipmentAccumulated depreciationTotal assetsSalaries payableLong-term notes payableCapital stockRetained earningsTotal liabilities and stockholders' equityPrior Year Current Year$2,000$5,3751,5001,0005,0007,500(500)(1.000)$8,000$12,875$500$1,0002,5002,5004,0004,0001,0005,375$8,000$12,875Additional information:1. Net income for the current year was $4,875.2. No disposals of equipment took place during the year.38°FCh 5-Cash Flows IndirectPrepare the statement of cash flows for the current year ended December 31, using the indirect method to report cash flows from operating activities.Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.

Name: Indirect Method- Preparing a Statement of Cash FlowsCalex Inc. report
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Indirect Method- Preparing a Statement of Cash FlowsCalex Inc. reported the following December 31 comparative balance sheets.Balance SheetsCash and cash equivalentsAccounts receivableEquipmentAccumulated depreciationTotal assetsSalaries payableLong-

The operating section of statement of cash flows under indirect method is prepared by adjusting non…

Business

Accounting

Indirect Method- Preparing a Statement of Cash Flows Calex Inc. reported the following December 31 comparative balance sheets. Balance Sheets Cash and cash equivalents Accounts receivable Equipment Accumulated depreciation Total assets Salaries payable $500 Long-term notes payable 2,500 Capital stock 4,000 Retained earnings 1,000 Total liabilities and stockholders' equity $8,000 Prior Year Current Year $2,000 $5,375 1,000 7,500 (1,000) $12,875 1,500 5,000 (500) $8,000 38°E $1,000 2,500 4,000 5,375 $12,875 Additional information: 1. Net income for the current year was $4,875. 2. No disposals of equipment took place during the year. Ch 5-Cash Flows Indirect Prepare the statement of cash flows for the current year ended December 31, using the indirect method to report cash flows from operating activities. Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.

Indirect Method- Preparing a Statement of Cash Flows Calex Inc. reported the following December 31 comparative balance sheets. Balance Sheets Cash and cash equivalents Accounts receivable Equipment Accumulated depreciation Total assets Salaries payable $500 Long-term notes payable 2,500 Capital stock 4,000 Retained earnings 1,000 Total liabilities and stockholders' equity $8,000 Prior Year Current Year $2,000 $5,375 1,000 7,500 (1,000) $12,875 1,500 5,000 (500) $8,000 38°E $1,000 2,500 4,000 5,375 $12,875 Additional information: 1. Net income for the current year was $4,875. 2. No disposals of equipment took place during the year. Ch 5-Cash Flows Indirect Prepare the statement of cash flows for the current year ended December 31, using the indirect method to report cash flows from operating activities. Note: Include a negative sign (-) for any amount that would be subtracted in the statement of cash flows.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 3PB: Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December...

See similar textbooks

Similar questions

Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.
Statement of cash flowsindirect method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Powells comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 29,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2.
Use the comparative balance sheet and the additional information provided to prepare a cash flow statement for Yannik Inc for the year ended 12/31/2021. Cash Accounts receivable (net) Inventory Equipment Accumulated depreciation TOTAL Accounts payable Notes payable - Long-term Common stock Retained earnings TOTAL Notes 2021 900,000 600,000 900,000 1,500,000 (600,000) 3,200,000 650,000 700,000 1,200,000 750,000 3,200,000 2020 700,000 500,000 750,000 1,200,000 (500,000) 2,650,000 400,000 800,000 1,000,000 450,000 2,650,000 1. Net income was $400,000. 2. Net income include a loss on sale of equipment equal to $20,000. The equipment had a book value of $80,000 at the time of sale. 3. Depreciation for the year was $100,000 4. Dividends of 100,000 have been declared and paid. 5. Increases or decreases in Equipment, Common Stock or Notes Payable refers to relevant purchases, issuances sales or retirements.
Statement of cash flow for the following: The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: 1 Dec. 31, 20Y2 Dec. 31, 20Y1 2 Assets 3 Cash $918,000.00 $964,800.00 4 Accounts receivable (net) 828,900.00 761,940.00 5 Inventories 1,268,460.00 1,162,980.00 6 Prepaid expenses 29,340.00 35,100.00 7 Land 315,900.00 479,700.00 8 Buildings 1,462,500.00 900,900.00 9 Accumulated depreciation-buildings (408,600.00) (382,320.00) 10 Equipment 512,280.00 454,680.00 11 Accumulated depreciation-equipment (141,300.00) (158,760.00) 12 Total assets $4,785,480.00 $4,219,020.00 13 Liabilities and Stockholders’ Equity 14 Accounts payable (merchandise creditors) $922,500.00 $958,320.00 15 Bonds payable 270,000.00 0.00 16 Common stock, $25 par 317,000.00 117,000.00 17 Paid-in capital in…
Print Item Statement of Cash Flows-Direct Method The comparative balance sheet of Suffridge Inc. for December 31, 20Y4 and 20Y3, is as follows: Dec. 31, 20Y4 Dec. 31, 20Y3 Assets Cash Accounts receivable (net) Inventories Investments Land Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity $790,090 1,185,100 1,664,800 0 1,146,100 1,461,300 (574,800) $5,672,590 Accounts payable Accrued expenses payable Dividends payable Common stock, $5 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity The income statement for the year ended December 31, 20Y4, is as follows: Sales $5,386,900 $1,289,400 80,900 120,300 155,200 1,134,200 2,892,590 $5,672,590 $815,600 1,091,700 1,628,200 515,800 0 1,174,800 (439,800) $4,786,300 $1,154,000 94,600 108,900 35,800 537,300 2,855,700 $4,786,300
(Calculating financial ratios) The balance sheet and income statement for the J. P. Robard Mfg. Company are as follows: Operating return on assets Debt ratio Average collection period Fixed asset turnover Return on equity Current ratio Times interest earned Inventory turnover Total asset turnover Operating profit margin The company's current ratio is (Round to two decimal places.) . Calculate the following ratios:
Statement of Cash Flows—Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $277,770 $258,990 Accounts receivable (net) 100,630 93,020 Inventories 284,060 275,390 Investments 0 106,700 Land 145,700 0 Equipment 313,410 243,490 Accumulated depreciation-equipment (73,370) (65,660) Total assets $1,048,200 $911,930 Liabilities and Stockholders' Equity Accounts payable $189,720 $179,650 Accrued expenses payable 18,870 23,710 Dividends payable 10,480 8,210 Common stock, $10 par 56,600 44,680 Paid-in capital: Excess of issue price over par-common stock 212,780 124,020 Retained earnings 559,750 531,660 Total liabilities and stockholders’ equity $1,048,200 $911,930 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,566,470 Cost of…
14. Cash Flow Statement Required: Prepare a statement of Cash Flows For Year Ended December 31, 2021 Use Proper Format and Indirect Method The comparative balance sheets of Street Inc. at the beginning and end of the year 2021 are as follows: Cash Accounts Receivable Inventory Property, Plant and Equipment Accumulated Depreciation Marketable Securities Loan Receivable Total Assets Accounts Payable Income Taxes Payable Dividends Payable Lease Liability Common Stock Capital in Excess of Par Retained Earnings Total Liabilities and Stockholders Equity Street, Inc. Income Statement For Year Ended December 31, 2021 Sales Cost of Good Sold Gross Profit Depreciation Expense Administrative Expense Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes Net Income Dec 31st $600,000 332,000 4,100,000 600,000 550,000 (325,000) (300,000) 1,250,000 1,000,000 100,000 $6,557,000 $6,070,000 $180,000 $140,000 45,000 46,000 10,000 January 1st $320,000 300,000 4,100,000 $4,000,000…
Statement of Cash Flows The comparative balance sheet of Hirayama Industries Inc. for December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash Accounts receivable (net) Inventories Land Equipment Accumulated depreciation-equipment $153 87 55 125 70 (19) $471 Total Assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Dividends payable Common stock, $1 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity $471 The following additional information is taken from the records: 1. Land was sold for $38. 2. Equipment was acquired for cash. 3. There were no disposals of equipment during the year. 4. The common stock was issued for cash. $59 9 31 77 295 $50 62 34 140 54 (10) $330 $50 16 39 225 $330 5. There was a $101 credit to Retained Earnings for net income. 6. There was a $31 debit to Retained Earnings for cash dividends declared. a. Prepare a statement of cash flows, using the indirect…