Plz Solve 13.6A from opreating, investing and finacing with direct method and write compution for every step 11:03 O OO llull 81%IL02PROBLEM 13.6APreparing a Statementof Cash Flows: AComprehensiveYou are the controller for 21st Century Technologies. Your staff has prepared an income statementfor the current year and has developed the following additional information by analyzing changesin the company's balance sheet accounts.throughL04Problem without aWorksheet21st CENTURY TECHNOLOGIESLOGINCOME STATEMENTeXcelFOR THE YEAR ENDED DECEMBER 31, 2011L08Revenue:Net sales.$3,200,000Interest revenue ..40,000Gain on sales of marketable securities34,000Total revenue and gains.$3,274,000Costs and expenses:Cost of goods sold$1,620,000Operating expenses (including depreciationof $150,000)1,240,000Interest expense42,000Income tax expense100,000Loss on sales of plant assets12,000Total costs, expenses, and losses3,014,000Net income...$ 260.000Additional Information1. Accounts receivable increased by $60,000.2. Accrued interest receivable decreased by $2,000.606Chapter 13 Statement of Cash Flows3. Inventory decreased by $60,000, and accounts payable to suppliers of merchandise decreasedby $16,000.4. Short-term prepayments of operating expenses increased by $6,000, and accrued liabilities foroperating expenses decreased by $8,000.5. The liability for accrued interest payable increased by $4,000 during the year.6. The liability for accrued income taxes payable decreased by $14,000 during the year.7. The following schedule summarizes the total debit and credit entries during the year in otherbalance sheet accounts:DebitCreditEntriesEntriesMarketable Securities$ 60,000$ 38,000Notes Receivable (cash loans made to borrowers)44,00028,000Plant Assets (see paragraph 8)500,00036,000Notes Payable (short-term borrowing)Capital Stock ..92,00082,00020,000Additional Paid-in Capital-Capital Stock160,000Retained Earnings (see paragraph 9)120,000260,0008. The $36,000 in credit entries to the Plant Assets account is net of any debits to AccumulatedDepreciation when plant assets were retired. Thus, the $36,000 in credit entries represents thebook value of all plant assets sold or retired during the year.9. The $120,000 debit to Retained Earnings represents dividends declared and paid during theyear. The $260,000 credit entry represents the net income shown in the income statement.10. All investing and financing activities were cash transactions.11. Cash and cash equivalents amounted to $244,000 at the beginning of the year and to $164,000at year-end.Instructionsa. Prepare a statement of cash flows for the current year. Use the direct method of reporting cashflows from operating activities. Place brackets around dollar amounts representing cash out-flows. Show separately your computations of the following amounts:1. Cash received from customers2. Interest received3. Cash paid to suppliers and employees4. Interest paid5. Income taxes paid6. Proceeds from sales of marketable securities7. Proceeds from sales of plant assets8. Proceeds from issuing capital stockb. Explain the primary reason why:1. The amount of cash provided by operating activities was substantially greater than thecompany's net income.2. There was a net decrease in cash over the year, despite the substantial amount of cashprovided by operating activities.As 21st Century's controller, you think that through more efficient cash management, thecompany could have held the increase in accounts receivable for the year to $10,000, with-out affecting net income. Explain how holding down the growth in receivables affects cash.Compute the effect that limiting the growth in receivables to $10,000 would have had on thecompany's net increase or decrease in cash (and cash equivalents) for the year.c.II

A cash flow statement refers to the financial documents which reflect the details of all the…

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Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 14P: (Appendix 21.1) Operating Cash Flows Refer to the information for Lamberson Company in P21-6....

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(Appendix 21.1) Operating Cash Flows Refer to the information for Lamberson Company in P21-6. Required: 1. Using the direct method, prepare the operating activities section of the 2019 statement of cash flows for Lamberson. 2. (Optional). If you completed P21-6 earlier, prepare the remaining portion of the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
11 Compute Cash Flow from Operating Activities from the following details: Particulars Trade Receivables: Debtors CA Bills Receivable CA Trade Payables: Creditors CL Bills Payable CL L Expenses Outstanding Accrued Income CAT Depreciation on Fixed Assets No + Surplus, i.e., Balance in Statement of Profit & Loss 31st March, 2023 (R) 50,000 23,000 28,000 22,000 4,500 9,000 5,000 90,000 31st March 2022 ) 60,000 25,000 32,000 35,000 3,500 8,000 4,000 80,000