Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Prepare a statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

Zowleski Company
Statement of Cash Flows (Indirect Method)
For the Year Ended December 31, 2018
Cash Flow from Operating Activities:
Net Income
28,400
Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities:
Depreciation Expense
4,000
Accounts Receivable Change
Merchandise Inventory Change
Accounts Payable Change
Net Cash Flow from Operating Activities
Cash Flow from Financing Activities:
Payment of Notes Payable (principal)
Net Cash Flow from Financing Activities
Total Cash Flow Increase
Cash Balance, December 31, 2017
Cash Balance, December 31, 2018
Noncash Investing and Financing Activities:
Plant Assets Acquired in Exchange for Notes Payable
Transcribed Image Text:Zowleski Company Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Cash Flow from Operating Activities: Net Income 28,400 Adjustments to Reconcile Net Income to Net Cash Flow from Operating Activities: Depreciation Expense 4,000 Accounts Receivable Change Merchandise Inventory Change Accounts Payable Change Net Cash Flow from Operating Activities Cash Flow from Financing Activities: Payment of Notes Payable (principal) Net Cash Flow from Financing Activities Total Cash Flow Increase Cash Balance, December 31, 2017 Cash Balance, December 31, 2018 Noncash Investing and Financing Activities: Plant Assets Acquired in Exchange for Notes Payable
Use the following excerpts from Zowleski Company's financial information.
Dec. 31, 2018
Dec. 31, 2017
Cash
$104,700
$95,000
Accounts Receivable
22,000
22,800
Merchandise Inventory
138,000
131,000
Plant Assets
185,000
155,000
Accumulated Depreciation
(25,000)
(21,000)
Total Assets
$424,700
$382,800
Accounts Payable
$19,000
$21,000
Notes Payable
135,500
120,000
Common Stock
20,000
20,000
Retained Earnings
250,200
221,800
Total Liabilities and Equity
$424,700
$382,800
Additional Information:
Net Income for 2018
$28,400
Depreciation Expense for 2018
(Accumulated Depreciation Increase)
4,000
Plant Assets Purchased (Plant Assets Increase),
Finance by Note
30,000
Notes Payable Increased by Amount
of Plant Assets Purchase
30,000
Notes Payable Decreased by Amount
of Principal Note Payments
14,500
Prepare a statement of cash flows (indirect method) for the vear 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
Transcribed Image Text:Use the following excerpts from Zowleski Company's financial information. Dec. 31, 2018 Dec. 31, 2017 Cash $104,700 $95,000 Accounts Receivable 22,000 22,800 Merchandise Inventory 138,000 131,000 Plant Assets 185,000 155,000 Accumulated Depreciation (25,000) (21,000) Total Assets $424,700 $382,800 Accounts Payable $19,000 $21,000 Notes Payable 135,500 120,000 Common Stock 20,000 20,000 Retained Earnings 250,200 221,800 Total Liabilities and Equity $424,700 $382,800 Additional Information: Net Income for 2018 $28,400 Depreciation Expense for 2018 (Accumulated Depreciation Increase) 4,000 Plant Assets Purchased (Plant Assets Increase), Finance by Note 30,000 Notes Payable Increased by Amount of Plant Assets Purchase 30,000 Notes Payable Decreased by Amount of Principal Note Payments 14,500 Prepare a statement of cash flows (indirect method) for the vear 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
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