Question

value 10.00 points PA12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5 XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized Current Year Year Balance Sheet at December 31 Cash Accounts Receivable s 33,580$ 28,550 27,700 37.700 97,000 34400 40.400 116.500 (29,400)(24,700) Equipment Accumulated Depreciation-Equipment $ 195,480$166.250 Accounts Payable Salaries and Wages Payable Note Payable (long-term) S 35,400 26,700 1.550 35,300 41.000 72.300 36,60024.700 1.380 Common Stock 86.800 $195.480 $166.250 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $ 117000 68,500 36,600 Net Income S 11,900

Answer 1

XS Supply Company
Cash Flow Statement
For the ended December 31 for current year
Cash Flow from Operating Activities:
Net Income		$    11,900.00
Add: Adjustments
Depreciation expense	$       4,700.00
Increase in Accounts Payables	$       8,700.00
Increase in Accounts receivables	$     (6,700.00)
Increase in Inventory	$     (2,700.00)
Decrease in salaries and wages payable	$        (170.00)
		$       3,830.00
A. Cash Flow from Operating Activities		$    15,730.00
Cash Flow from Investing Activities:
Purchase of Equipment	$ (19,500.00)
B. Cash flow from Investing Activities		$ (19,500.00)
Cash Flow from Financing Activities:
Issue of Common Stock	$     14,500.00
Retirement of long term notes payable	$     (5,700.00)
C. Cash Flow from Financing Activities		$       8,800.00
Increase (Decrease) in cash [A+B+C]		$       5,030.00
Add: cash at the beginning of the year		$    28,550.00
Cash at the end of the year		$    33,580.00