Prepare cash flow statement using indirect method.

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Chapter 9, Problem 32EA

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Prepare cash flow statement using indirect method.

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Chapter 13 Statement of Cash Flows-Direct Method The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $287,620 $265,700 Accounts receivable (net) 104,190 95,430 Inventories 294,120 282,540 Investments 109,460 Land 150,860 Equipment 324,520 249,790 Accumulated depreciation (75,970) (67,360) Total assets $1,085,340 $935,560 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $196,450 $184,310 Accrued expenses payable (operating expenses) 19,540 24,320 Dividends payable 10,850 8,420 Common stock, $10 par 58,610 45,840 Paid-in capital: Excess of issue price over par-common stock 220,320 127,240 Retained earnings 579,570 545,430 Total liabilities and stockholders' equity $1,085,340 $935,560 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,730,890 Cost of goods sold 712,700 Gross profit $1,018,190 Operating expenses: Depreciation expense $8,610…

The following Cash T-account shows the total debits and total credits to the Cash account of Thomas Corporation for the current year. 1. Prepare a complete statement of cash flows for the current year using the direct method. 2. Refer to the statement of cash flows prepared for part 1 to answer the following questions. (a) Which section—operating, investing, or financing—shows the largest cash (i) inflow and (ii) outflow? (b) What is the largest individual item among the investing cash outflows? (c) Are the cash proceeds larger from issuing notes or issuing stock? (d) Does the company have a net cash inflow or outflow from borrowing activities?

Below are several transactions for Meyers Corporation for 2021.Required: 1. For each transaction, determine the amount of cash flows (indicate inflows with a “+” and outflows with a “−”). If cash is involved in the transaction, indicate whether Meyers should classify it as operating, investing, or financing in a statement of cash flows. Enter N/A if the question is not applicable to the statement. 2. Calculate net cash flows for the year. 3. Assuming the balance of cash on January 1, 2021, equals $5,400, calculate the balance of cash on December 31, 2021.