Balance SheetDecember 31, 20X6(with comparative figures for 20X5)20X6$ 25,00032,00048,00015,00020X5$ -24,00060,0008,000150,00030,000$ 245,000 $ 212,000CashAccounts receivableInventoryLong term investmentsProperty, plant, & equipmentLess: accumulated depreciation170,00045,000Total Assets$ 8,00016,00035,00030,000123,000$ 245,000 $ 212,000Bank overdraft$24,000Accounts payableNotes payableCommon shares30,00030,000161,000Retained earningsTotal liabilities and equityGiven the balance sheet above, prepare a statement of cash flows for CompanionEnterprises Ltd. using the indirect method. Net income for 20X6 was $88,000.There were no disposals of capital assets or long-terminvestments.

In the indirect method of cashflow statement, we start with net profit for the year and then compute…

Balance Sheet December 31, 20X6 (with comparative figures for 20X5) 20X6 20X5 $ - $ 25,000 32,000 48,000 15,000 170,000 45,000 $ 245,000 $ 212,000 Cash 24,000 60,000 8,000 150,000 30,000 Accounts receivable Inventory Long term investments Property, plant, & equipment Less: accumulated depreciation Total Assets $ 8,000 16,000 35,000 30,000 123,000 Bank overdraft $ 24,000 30,000 30,000 161,000 $ 245,000 $ 212,000 Accounts payable Notes payable Common shares Retained earnings Total liabilities and equity Given the balance sheet above, prepare a statement of cash flows for Companion Enterprises Ltd. using the indirect method. Net income for 20X6 was $88,000. There were no disposals of capital assets or long-terminvestments.

Balance Sheet December 31, 20X6 (with comparative figures for 20X5) 20X6 20X5 $ - $ 25,000 32,000 48,000 15,000 170,000 45,000 $ 245,000 $ 212,000 Cash 24,000 60,000 8,000 150,000 30,000 Accounts receivable Inventory Long term investments Property, plant, & equipment Less: accumulated depreciation Total Assets $ 8,000 16,000 35,000 30,000 123,000 Bank overdraft $ 24,000 30,000 30,000 161,000 $ 245,000 $ 212,000 Accounts payable Notes payable Common shares Retained earnings Total liabilities and equity Given the balance sheet above, prepare a statement of cash flows for Companion Enterprises Ltd. using the indirect method. Net income for 20X6 was $88,000. There were no disposals of capital assets or long-terminvestments.

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1.3AIC: Estimate the average total estimated useful life of depreciable property, plant, and equipment....

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