Statement of cash flows: It represents net cash flow available after taking into consideration operating, financing, and investing expenses for a given financial year.
Indirect method: Indirect method is the most widely used method to compute cash (used) provided by operating activities. Under this method net cash flow is determined by adding back noncash expense and losses to net income and deducting all noncash income and gains from net income.
Balance sheet: Represents financial position of a particular firm at that date; it also shows what are the assets owned and liabilities incurred by the company at that date.
To prepare: To prepare a statement of cash flows (Indirect method).
Given Information:
Assets |
Amount ($) |
Liabilities |
Amount ($) |
Cash |
8,500 |
Current liabilities |
15,000 |
Current assets other than cash |
29,000 |
Long-term notes payable |
25,500 |
Investments |
20,000 |
Bonds payable |
25,000 |
Plant assets (net) |
67,500 |
Common stock |
75,000 |
Land |
40,000 |
24,500 |
|
|
165,000 |
|
165,000 |
(B)
(B)
To prepare: To prepare a condensed Balance sheet.
Want to see the full answer?
Check out a sample textbook solutionChapter 23 Solutions
Intermediate Accounting
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education