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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Subject- accounting
![The following information was taken from the financial records of the XYZ Company for 2022.
End of Year
Beginning of Year
$391,000
$376,000 266,000
554,300
567,800
693,000
672,400
27,000
24,000
510,000
527,400
Wages Payable
39,500
36,000
The net income reported on the income staternt for the current year was $165,000, which included a
gain on sale of investments of $6,000 (The investments had a book value of $10,000).
Depreciation expense recorded on store equipment for the year amounted to $19,000.
Change in Non-Current Assets, Non-Current Liabilities, and Equity Accounts:
Long-term investments
$30,000
Property, plant and equipment
60,000
Bonds payable
50,000
Common stock
20,000
Dividends
15,000
Required: Prepare a complete Statement of Cash Flows-Using the indirect method to prepare the
operating activities section
Format is important - make sure that you have appropriate spacing, indents and columns.
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Accounts Payable (creditors)](https://content.bartleby.com/qna-images/question/f7373726-0d35-46ca-aa27-97bcf9126f3a/896d3230-8371-4365-b3cf-b9706d45488b/5jpi1g_thumbnail.jpeg)
Transcribed Image Text:The following information was taken from the financial records of the XYZ Company for 2022.
End of Year
Beginning of Year
$391,000
$376,000 266,000
554,300
567,800
693,000
672,400
27,000
24,000
510,000
527,400
Wages Payable
39,500
36,000
The net income reported on the income staternt for the current year was $165,000, which included a
gain on sale of investments of $6,000 (The investments had a book value of $10,000).
Depreciation expense recorded on store equipment for the year amounted to $19,000.
Change in Non-Current Assets, Non-Current Liabilities, and Equity Accounts:
Long-term investments
$30,000
Property, plant and equipment
60,000
Bonds payable
50,000
Common stock
20,000
Dividends
15,000
Required: Prepare a complete Statement of Cash Flows-Using the indirect method to prepare the
operating activities section
Format is important - make sure that you have appropriate spacing, indents and columns.
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Accounts Payable (creditors)
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