Question

Turi Co, a trading company recently completed i 2011 operations. For the year, (1) all e credit sales, (2) all credits to Account Receivable reflects cash receipts from customers, 3) All purchases of inventory are on credit, (4) all debit to Accounts Payable reflect cash payments for investory. (5) Other Expenses are cash expenses, and (6) my change to come To Payable reflects the serial and cash payment of the Thuri's Statement of Financial Position and Statement of Competensive Income follows: TAURASI COMPANY Comparative Statement of Financial Position December 31, Assets Account receivable Inventory Equipment Accumulated Depreciation - Equipment Total assets 53.925 19,425 175.350 105,450 (48100) 305,850 2010 31,800 23,250 139,875 76,500 (30,600 240,825 Liabilities and Equity Accounts payable Income taxes payable Common stock, 55 par value Share premium (Contributed capital in excess of per common stock) Retained earnings Total liabilities and equity 38,475 4,500 165,000 42.000 35,625 6,750 150,000 15,000 55.875 305,850 33.450 240.325 TAURASI COMPANY Statement of Comprehensive Income For the year ended December 31, 2011 609,750 279,000 330.750 Sales revenue Less Cost of goods sold Gross Profit Loss: Operating expenses Depreciation expenses Other expenses Income before faces income tax expense Not income 17,700 179,775 197,475 133,275 44,850 88.425 Additional information on year 2011 transactions Purchased equipment for $28.950 cash 5 Issued 3,000 shares of common stock for $14 cash per share Declared and paid $66,000 of cash dividends. Required: Prepare a statement of cash flows according to the indirect method

Answer 1

Answer:-

$ 88,425 $ 17,700 $ 44,850 CASH FLOW STATEMENT CASH FLOW FROM OPERATING ACTIVITIES: Net income Add Depreciation expense Add Income tax provided Operating income before working capital change Adjustment for Derease in Account receivable Increase in inventory Increase in Account payable Cash generated from operation Less: Income tax paid Net cash flow from operating activities CASH FLOW FROM INVESTING ACTIVITIES: Equipment purchased Net cash flow from Investing activities CASH FLOW FROM FINANCING ACTIVITIES: Cash dividend Issue of common stock Net cash flow from financing activities Net increase in cash and cash equivalents Cash & cash equivalents on December 31, 2010 Cash & cash equivalents on December 31, 2011 $ 1,50,975 $ 3,825 $ (35,475) $ 2,850 $1,22,175 $ 47,100 $ 75,075 $ (28,950) $ (28,950) $ (66,000) $ 42,000 $ (24,000) $ 22,125 $ 31,800 $ 53,925

$ Beginning balance of income tax payable Add: Income tax expense Less: Ending balance of income tax payable Income tax paid 6,750 44,850 4,500 47,100