ccountants for Morston, Inc. have assembled the following data for the year ended December 31, 2024: (Click the icon to view the current accounts.) (Click the icon to view the transaction data.) repare Morston's statement of cash flows using the indirect method. Include an accompanying schedule of non-cash investing and financing activities. Data table Acquisition of Land by Issuing Long-term Notes Payable Cash Payment of Dividends Transaction Data for 2024: Cash Payment of Notes Payable Issuance of common stock for cash Depreciation expense Cash Payment for Acquisition of Equipment $ 39,000 21,000 68,000 114,000 Purchase of equipment with cash Cash Receipt from Issuance of Common Stock Acquisition of land by issuing long-term notes payable Book value of building sold 55,000 Cash Receipt from Issuance of Notes Payable Cash Receipt from Sale of Building Data table Decrease in Accounts Receivable Decrease in Income Tax Payable Depreciation Expense 58,000 (68,000) Gain on Sale of Building Increase in Accounts Payable Increase in Merchandise Inventory W Y Net Cash Provided by (Used for) Financing Activities Help me solve this Demodocs example Get more help. (10,000) Current Assets Cash Accounts Receivable Merchandise Inventory Accounts Payable Income Tax Payable Print Current Liabilities: Payment of notes payable Payment of cash dividends Issuance of notes payable to borrow cas Gain on sale of building Net income - X 2024 $ 103,700 S 64,400 86,000 57,700 14,400 Done 2023 17,000 68,900 81,000 56,100 16,200 Clear all Che

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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### Preparation of Morston Inc.'s Statement of Cash Flows

**Scenario:**
Accountants for Morston, Inc. have assembled the following data for the year ended December 31, 2024, to prepare Morston's statement of cash flows using the indirect method. The statement should include an accompanying schedule of non-cash investing and financing activities.

**Available Data for 2024:**
1. **Acquisitions and Payments:**
    - Acquisition of Land by Issuing Long-term Notes Payable
    - Cash Payment of Dividends
    - Cash Payment of Notes Payable
    - Cash Payment for Acquisition of Equipment

2. **Receipts:**
    - Cash Receipt from Issuance of Common Stock
    - Cash Receipt from Issuance of Notes Payable
    - Cash Receipt from Sale of Building

3. **Decreases:**
    - Decrease in Accounts Receivable
    - Decrease in Income Tax Payable

4. **Depreciation and Inventory:**
    - Depreciation Expense
    - Gain on Sale of Building
    - Increase in Accounts Payable
    - Increase in Merchandise Inventory

**Data Table for 2024 (Transactions):**

| Transaction | Amount ($) |
| ----------- | ---------- |
| Issuance of common stock for cash | 39,000 |
| Depreciation expense | 21,000 |
| Purchase of equipment with cash | 68,000 |
| Acquisition of land by issuing long-term notes payable | 114,000 |
| Book value of building sold | 55,000 |
| Payment of notes payable | 40,000 |
| Payment of cash dividends | 19,000 |
| Issuance of notes payable to borrow cash | 80,000 |
| Gain on sale of building | 24,000 |
| Net income | 95,000 |

**Financial Comparison for Assets and Liabilities (2024 vs. 2023):**

| Current Assets/Liabilities | 2024 ($) | 2023 ($) |
| -------------------------- | -------- | -------- |
| Cash | 103,750 | 17,000 |
| Accounts Receivable | 64,400 | 68,900 |
| Merchandise Inventory | 120,600 | 112,900 |
| Accounts Payable | 57,700 | 56,000 |
| Income Tax Payable | 14,
Transcribed Image Text:### Preparation of Morston Inc.'s Statement of Cash Flows **Scenario:** Accountants for Morston, Inc. have assembled the following data for the year ended December 31, 2024, to prepare Morston's statement of cash flows using the indirect method. The statement should include an accompanying schedule of non-cash investing and financing activities. **Available Data for 2024:** 1. **Acquisitions and Payments:** - Acquisition of Land by Issuing Long-term Notes Payable - Cash Payment of Dividends - Cash Payment of Notes Payable - Cash Payment for Acquisition of Equipment 2. **Receipts:** - Cash Receipt from Issuance of Common Stock - Cash Receipt from Issuance of Notes Payable - Cash Receipt from Sale of Building 3. **Decreases:** - Decrease in Accounts Receivable - Decrease in Income Tax Payable 4. **Depreciation and Inventory:** - Depreciation Expense - Gain on Sale of Building - Increase in Accounts Payable - Increase in Merchandise Inventory **Data Table for 2024 (Transactions):** | Transaction | Amount ($) | | ----------- | ---------- | | Issuance of common stock for cash | 39,000 | | Depreciation expense | 21,000 | | Purchase of equipment with cash | 68,000 | | Acquisition of land by issuing long-term notes payable | 114,000 | | Book value of building sold | 55,000 | | Payment of notes payable | 40,000 | | Payment of cash dividends | 19,000 | | Issuance of notes payable to borrow cash | 80,000 | | Gain on sale of building | 24,000 | | Net income | 95,000 | **Financial Comparison for Assets and Liabilities (2024 vs. 2023):** | Current Assets/Liabilities | 2024 ($) | 2023 ($) | | -------------------------- | -------- | -------- | | Cash | 103,750 | 17,000 | | Accounts Receivable | 64,400 | 68,900 | | Merchandise Inventory | 120,600 | 112,900 | | Accounts Payable | 57,700 | 56,000 | | Income Tax Payable | 14,
### Cash Flow Statement Section

#### Net Cash Provided by (Used for) Investing Activities

---

#### Cash Flows from Financing Activities:

| Description | Amount |
|-------------|--------|
|             | [       ] |
|             | [       ] |
|             | [       ] |
|             | [       ] |

---
#### Net Cash Provided by (Used for) Financing Activities

|                              | [        ] |

---

At the bottom of the screen, there are three clickable options:

- **Help me solve this**
- **Demodocs example**
- **Get more help**

In the bottom right corner, there are two icons:
1. The first icon resembles the Windows operating system logo.
2. The second icon looks like a magnifying glass, possibly indicating a search function.

### Explanation of the Layout

This screen appears to be a part of a financial software program or an educational webpage aimed at teaching users how to fill out a cash flow statement, particularly the sections on investing and financing activities. 

- The **Investing Activities** and **Financing Activities** sections offer fields where users are expected to input relevant financial data.
- The **Net Cash Provided by (Used for) Investing Activities** and **Net Cash Provided by (Used for) Financing Activities** totals are calculated based on the provided input.

These sections allow students to utilize accounting principles and potentially see examples or receive help via the clickable options provided at the bottom.
Transcribed Image Text:### Cash Flow Statement Section #### Net Cash Provided by (Used for) Investing Activities --- #### Cash Flows from Financing Activities: | Description | Amount | |-------------|--------| | | [ ] | | | [ ] | | | [ ] | | | [ ] | --- #### Net Cash Provided by (Used for) Financing Activities | | [ ] | --- At the bottom of the screen, there are three clickable options: - **Help me solve this** - **Demodocs example** - **Get more help** In the bottom right corner, there are two icons: 1. The first icon resembles the Windows operating system logo. 2. The second icon looks like a magnifying glass, possibly indicating a search function. ### Explanation of the Layout This screen appears to be a part of a financial software program or an educational webpage aimed at teaching users how to fill out a cash flow statement, particularly the sections on investing and financing activities. - The **Investing Activities** and **Financing Activities** sections offer fields where users are expected to input relevant financial data. - The **Net Cash Provided by (Used for) Investing Activities** and **Net Cash Provided by (Used for) Financing Activities** totals are calculated based on the provided input. These sections allow students to utilize accounting principles and potentially see examples or receive help via the clickable options provided at the bottom.
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