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Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock. Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $9,700. b. Paid $11,000 on the long-term notes payable. c. Issued new shares of stock for $23,500 cash. d. Declared and paid a $4,500 cash dividend. $ 52,030 33,300 $ 21,500 36,000 36,300 118,700 (40,200) $ 200,130 $ 29,200 -730 43,000 109,000 (33,500) $ 176,000 $ 25,500 1,000 44,000 55,000 90,500 67,000 35,700 27,500 $176,000 $ 200,130 $ 107,000 64,500 29,800 $ 12,700 e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should with a minus sign.)

Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock. Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $9,700. b. Paid $11,000 on the long-term notes payable. c. Issued new shares of stock for $23,500 cash. d. Declared and paid a $4,500 cash dividend. $ 52,030 33,300 $ 21,500 36,000 36,300 118,700 (40,200) $ 200,130 $ 29,200 -730 43,000 109,000 (33,500) $ 176,000 $ 25,500 1,000 44,000 55,000 90,500 67,000 35,700 27,500 $176,000 $ 200,130 $ 107,000 64,500 29,800 $ 12,700 e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should with a minus sign.)

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.9E
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Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock. Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $9,700. b. Paid $11,000 on the long-term notes payable. c. Issued new shares of stock for $23,500 cash. d. Declared and paid a $4,500 cash dividend. $ 52,030 33,300 $ 21,500 36,000 36,300 118,700 (40,200) $ 200,130 $ 29,200 -730 43,000 109,000 (33,500) $ 176,000 $ 25,500 1,000 44,000 55,000 90,500 67,000 35,700 27,500 $176,000 $ 200,130 $ 107,000 64,500 29,800 $ 12,700 e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should with a minus sign.)
Transcribed Image Text:Hunter Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock. Retained Earnings Total Liabilities and Stockholders' Equity Income Statement (current year) Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $9,700. b. Paid $11,000 on the long-term notes payable. c. Issued new shares of stock for $23,500 cash. d. Declared and paid a $4,500 cash dividend. $ 52,030 33,300 $ 21,500 36,000 36,300 118,700 (40,200) $ 200,130 $ 29,200 -730 43,000 109,000 (33,500) $ 176,000 $ 25,500 1,000 44,000 55,000 90,500 67,000 35,700 27,500 $176,000 $ 200,130 $ 107,000 64,500 29,800 $ 12,700 e. Other expenses included depreciation, $6,700; salaries and wages, $10,700; taxes, $3,700; utilities, $8,700. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should with a minus sign.)
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