14th Edition

ISBN: 9781337119207

Author: Carl Warren, James M. Reeve, Jonathan Duchac

Publisher: Cengage Learning

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Textbook Question

Chapter 13, Problem 13.3BPR

Statement of cash flows—indirect method

The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows:

	Dec 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$ 300,600	$ 337,800
Accounts receivable (net)	704,400	609,600
inventories	918,600	865,800
Prepaid expense	18,600	26,400
Land	990,000	1,386,000
Buildings	1,980,000	990,000
Accumulated depreciation—buildings	(307,200)	(366,000)
Equipment	660,600	529,800
Accumulated depreciation—equipment	(133,200)	(162,000)
Total assets	$ 5,042,400	$4,217,400
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 594,000	$ 631,300
Income taxes payable	26,400	21,600
Bonds payable	330,000	0
Common stock, $20 par	320,000	180,000
Paid-in capital: Excess of issue price over par—common stock	950,000	8 10,000
Retained earnings	2,822,000	2,574,600
Total liabilities and stockholders' equity	$ 5,042,400	$4,217,400

The noncurrrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows:

Chapter 13, Problem 13.3BPR, Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December , example 1

Chapter 13, Problem 13.3BPR, Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December , example 2

Instructions

Prepare a statement of cash flow s, using the indirect method of presenting cash flows from operating activities.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 13, Problem 13.2BPR

Chapter 13, Problem 13.4BPR

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Chapter 13 Solutions

Financial & Managerial Accounting

Ch. 13 - Prob. 1DQ Ch. 13 - Prob. 2DQ Ch. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - If salaries payable was 100,000 at the beginning...Ch. 13 - Prob. 6DQ Ch. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQ Ch. 13 - Name five common major classes of operating cash...

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Solution Summary: The author explains the indirect method used to calculate the net cash provided from operating activities.

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