Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.

Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
The company reported for the current year 20X1 the following income statement: Sales Cost of goods Gross margin Income Statement Selling expenses General & administrative expenses Net income before taxes Income Taxes Net Income after Taxes 202,500 (105,000) 97,500 (20,000) (27,700) 49,800 (9,000) 40,800 Additional Information: The amounts of selling expenses and general & administrative expenses incorporate expenses related to wages of about €26,000, other expenses paid in cash of about €14,200 and depreciation expenses. Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.
Transcribed Image Text:The company reported for the current year 20X1 the following income statement: Sales Cost of goods Gross margin Income Statement Selling expenses General & administrative expenses Net income before taxes Income Taxes Net Income after Taxes 202,500 (105,000) 97,500 (20,000) (27,700) 49,800 (9,000) 40,800 Additional Information: The amounts of selling expenses and general & administrative expenses incorporate expenses related to wages of about €26,000, other expenses paid in cash of about €14,200 and depreciation expenses. Prepare the cash flow statement for "Beta" Company using the indirect method Prepare the cash flow statement for "Beta" Company using the direct method Analyse the cash flow statement for "Beta" Company.
A comparative balance sheet for "BETA" Company containing data in € for the most recent years is as follows: Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets Current assets: Cash and cash equivalents Accounts receivables Inventories Prepayment accounts Total current assets Total assets 20X1 160,000 (45,000) 115,000 21,500 136,500 51,000 67,500 40,000 8,000 166,500 303,000 Comparative Balance Sheet Liabilities & 20X0 Stockholders' Equity Stockholders' equity: 135,000 Common stock (37,500) Retained earnings 97,500 Total equity 15,000 Long-term liabilities: 112,500 Long-term notes payable Total long-term liabilities Current liabilities: 8,000 142,500 stockholders' 43,500 42,000 Accounts payable Wages payable 49,000 Taxes payable Short-term debt Total current liabilities Total liabilities 255,000 Total liabilities & stockholders' equity 20X1 129,900 55,800 185,700 57,000 57,000 22,000 3,300 3,000 32,000 60,300 117,300 303,000 20X0 105,900 37,500 143,400 54,000 54,000 17,000 2,100 15,000 23,500 57,600 111,600 255,000
Transcribed Image Text:A comparative balance sheet for "BETA" Company containing data in € for the most recent years is as follows: Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets Current assets: Cash and cash equivalents Accounts receivables Inventories Prepayment accounts Total current assets Total assets 20X1 160,000 (45,000) 115,000 21,500 136,500 51,000 67,500 40,000 8,000 166,500 303,000 Comparative Balance Sheet Liabilities & 20X0 Stockholders' Equity Stockholders' equity: 135,000 Common stock (37,500) Retained earnings 97,500 Total equity 15,000 Long-term liabilities: 112,500 Long-term notes payable Total long-term liabilities Current liabilities: 8,000 142,500 stockholders' 43,500 42,000 Accounts payable Wages payable 49,000 Taxes payable Short-term debt Total current liabilities Total liabilities 255,000 Total liabilities & stockholders' equity 20X1 129,900 55,800 185,700 57,000 57,000 22,000 3,300 3,000 32,000 60,300 117,300 303,000 20X0 105,900 37,500 143,400 54,000 54,000 17,000 2,100 15,000 23,500 57,600 111,600 255,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 8 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS