Use the following information to prepare a statement of cash flows for Stable Equipment Company for...
Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2019.
Net income for the year 2019 was $5,000. Accounts receivable decreased $2,000, while inventories increased $4,000. Accounts payable decreased $7,000 and Accrued liabilities increased $1,000. Depreciation expense included in net income was $8,000.
During the year, a piece of used equipment with its book value of $7,500 was sold for $8,000 and a new service truck was purchased for $14,000.
The company borrowed $18,000 on a two-year note from the bank. Dividends of $6,000 were paid in cash.
The beginning cash balance was $22,000 and the ending balance was $32,500.
Required:
- Prepare the Statement of Cash Flows for Stable Equipment Company for the year ended December 31, 2019. Use the indirect method for the operating activities section of the statement. You need to separately classify cash flows from operations, financing and investments.
- Explain the reason why depreciation is needed to adjust to reconcile net income to cash flow from operations.
- Explain the reason why you need to adjust gains/losses on disposition of Equipment for the reconciliation between net income and cash flows from operations.
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
Use the following information to prepare a statement of cash
flows for Stable Equipment Company for...
Question #7 Statement of Cash Flows-Indirect Method compilation (16 points) Use the following information to prepare...
Question #7 Statement of Cash Flows-Indirect Method compilation (16 points) Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2018. Use the indirect method for the operating activities section of the statement. Information: Net income for the year 2018 was $5,000. Depreciation expense included in net income was $8,000. Accounts receivable decreased $2,000, while inventories increased $4,000. Accounts payable decreased $7,000. During the year, a piece of land...
7. Prepare the operating section of the statement of cash flows under the Indirect method using...
7. Prepare the operating section of the statement of cash flows under the Indirect method using the income statement below. During the year, the accounts payable also increased by $1,200 and accounts receivable decreased by $2,200 $182,100 90.400 $ 91,700 ABC Corporation Income Statement For the Year Ended December 31, 2015 Sales revenue Cost of merchandise sold Gross profit Operating expenses: Salaries expense $41,300 Advertising expense 1.500 Depreciation expense Amortization expense Total operating expenses Income from operations Other income and...
Use the following information of VPI Co. to prepare a statement of cash flows for the...
Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,600 Cash balance at prior year-end Increase in inventory Depreciation expense Cash received from issuing stock Cash paid for dividends $42, 400 7,400...
Prepare a statement of cash flows--indirect method Presented below are the financial statements of Warner Company....
Prepare a statement of cash flows--indirect method Presented below are the financial statements of Warner Company. WARNER COMPANY Comparative Balance Sheet December 31 Assets 2022 2023 Cash $35,000 $20,000 Accounts receivable 20,000 14,000 Inventory 28,000 20,000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $111,000 $108,000 Liabilities and Stockholders' Equity Accounts payable $19,000 $15,000 Income taxes payable 7,000 8,000 Bonds payable 17,000 33,000 Common stock 18,000 14,000 Retained earnings 50,000 38,000 Total $111,000 $108,000 WARNER COMPANY Income...
Prepare a statement of cash flows using the direct method. FILMORE COMPANY Comparative Balance Sheets December...
Prepare a statement of cash flows using the direct method.
FILMORE COMPANY Comparative Balance Sheets December 31 2013 2014 25,000 41,000 Assets 33,000 14,000 25,000 Cash Accounts receivable Inventory Property, plant, and equipment 73,000 Less: Accumulated depreciation 27,000) Total 23,000 45.000$126,000 78,000 46.000 (24,000) 54,000 135,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $23,000 26,000 20,000 25,000 41,000 $135,000 $ 46,000 23,000 10,000 25,000 22,000 $126,000 FILMORE COMPANY Income Statement For...
Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the...
Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Kentucky Company Income Statement Year Ended December 31, 2019 Sales Revenue $247,000 Interest Revenue 2,200 Gain on Sale of Plant Assets 5,900 Total Revenues and Gains $255,100 Cost of Goods Sold 118,000 Salary Expense 45,000 Depreciation Expense 10,000 Other Onerating Fynences 24 0 O A. $32,700 OB. $38,600 OC. $28,600 OD. $13,000 Kentucky Company uses the indirect method to prepare the...
Question 2 (10 Marks) The Statement of Cash Flows of Gourmet Corporation for Year Ended December...
Question 2 (10 Marks) The Statement of Cash Flows of Gourmet Corporation for Year Ended December 31, Year 2019 (refer Exhibit 2.1) was prepared based on the following information on Gourmet Corporation's Balance Sheet and Income Statement. Exhibit 2.4 is a conversion adjustment made on the Cash Flows from Operations. Some additional information also included. Exhibit 2.1: The Statement of Cash Flows of Gourmet Corporation for Year Ended December 31, Year 2019 Gourmet Corporation Statement of Cash Flows For Year...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare a statement of cash flows using the indirect method Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock 75,000 Cash received from sale of equipment Depreciation expense Gain on sale...
Prepare Google's statement 2010. P1-5 Financial statements, including statement of cash flows Gemstones Corporation began operations...
Prepare Google's statement 2010. P1-5 Financial statements, including statement of cash flows Gemstones Corporation began operations on January 1, 2013, as an online re- tailer of computer software and hardware. The following financial statement data were taken from Gemstones' records at the end of its first year of operations. December 31, 2013 $ 20,000 110,000 252,000 Accounts payable Accounts receivable Capital stock Cash Cash payments for operating activities Cash receipts from operating activities Cost of sales Dividends Income tax expense...
Question #7 Statement of Cash Flows-Indirect Method compilation (16 points) Use the following information to prepare a statement of cash flows for Stable Equipment Company for the year ended December 31, 2018. Use the indirect method for the operating activities section of the statement. Information: Net income for the year 2018 was $5,000. Depreciation expense included in net income was $8,000. Accounts receivable decreased $2,000, while inventories increased $4,000. Accounts payable decreased $7,000. During the year, a piece of land...
7. Prepare the operating section of the statement of cash flows under the Indirect method using the income statement below. During the year, the accounts payable also increased by $1,200 and accounts receivable decreased by $2,200 $182,100 90.400 $ 91,700 ABC Corporation Income Statement For the Year Ended December 31, 2015 Sales revenue Cost of merchandise sold Gross profit Operating expenses: Salaries expense $41,300 Advertising expense 1.500 Depreciation expense Amortization expense Total operating expenses Income from operations Other income and...
Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) Gain on sale of machinery Cash received from sale of machinery Increase in accounts payable Net income Decrease in accounts receivable $ 2,600 Cash balance at prior year-end Increase in inventory Depreciation expense Cash received from issuing stock Cash paid for dividends $42, 400 7,400...
Prepare a statement of cash flows using the direct method.
FILMORE COMPANY Comparative Balance Sheets December 31 2013 2014 25,000 41,000 Assets 33,000 14,000 25,000 Cash Accounts receivable Inventory Property, plant, and equipment 73,000 Less: Accumulated depreciation 27,000) Total 23,000 45.000$126,000 78,000 46.000 (24,000) 54,000 135,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $23,000 26,000 20,000 25,000 41,000 $135,000 $ 46,000 23,000 10,000 25,000 22,000 $126,000 FILMORE COMPANY Income Statement For...
Kentucky Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement: Kentucky Company Income Statement Year Ended December 31, 2019 Sales Revenue $247,000 Interest Revenue 2,200 Gain on Sale of Plant Assets 5,900 Total Revenues and Gains $255,100 Cost of Goods Sold 118,000 Salary Expense 45,000 Depreciation Expense 10,000 Other Onerating Fynences 24 0 O A. $32,700 OB. $38,600 OC. $28,600 OD. $13,000 Kentucky Company uses the indirect method to prepare the...
Question 2 (10 Marks) The Statement of Cash Flows of Gourmet Corporation for Year Ended December 31, Year 2019 (refer Exhibit 2.1) was prepared based on the following information on Gourmet Corporation's Balance Sheet and Income Statement. Exhibit 2.4 is a conversion adjustment made on the Cash Flows from Operations. Some additional information also included. Exhibit 2.1: The Statement of Cash Flows of Gourmet Corporation for Year Ended December 31, Year 2019 Gourmet Corporation Statement of Cash Flows For Year...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Newcastle Corporation to prepare a statement of cash flows using the indirect method: Accounts payable decrease $7,000 Accounts receivable increase 9,800 Wages payable decrease 4,200 Amortization expense 22.400 Cash balance, January 1 42,000 Cash balance, December 31 9,800 Cash paid as dividends 8,400 Cash paid to purchase land 140,000 Cash paid to retire bonds payable at par 105,000 Cash received from issuance of common stock 63,000 Cash received...
Statement of Cash Flows (Indirect Method) Use the following information regarding the Fremantle Corporation to prepare a statement of cash flows using the indirect method Accounts payable increase Accounts receivable increase Accrued liabilities decrease Amortization expense Cash balance, January 1 Cash balance, December 31 Cash paid as dividends Cash paid to purchase land Cash paid to retire bonds payable at par Cash received from issuance of common stock 75,000 Cash received from sale of equipment Depreciation expense Gain on sale...
Prepare Google's statement 2010. P1-5 Financial statements, including statement of cash flows Gemstones Corporation began operations on January 1, 2013, as an online re- tailer of computer software and hardware. The following financial statement data were taken from Gemstones' records at the end of its first year of operations. December 31, 2013 $ 20,000 110,000 252,000 Accounts payable Accounts receivable Capital stock Cash Cash payments for operating activities Cash receipts from operating activities Cost of sales Dividends Income tax expense...
Most questions answered within 3 hours.
-
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 10 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 15 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 16 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 15 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 30 minutes ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 37 minutes ago -
The average area of land burned by forest fires every year in
Canada is 2.5 million...
asked 39 minutes ago -
36. The basic difference between government bureaus and market
firms is that bureaus:
a. can...
asked 39 minutes ago -
java
- A recursive method findR() to search for a number in list
(ArrayList)
- A...
asked 57 minutes ago -
Which of the following is an example of a screen against adverse
selection? [Mark All That...
asked 56 minutes ago -
A worker drives a 0.560 kg spike into a rail tie with a 2.76 kg
sledgehammer....
asked 1 hour ago -
Assume the following information concerning two stocks that make
up an index. What is the price-weighted...
asked 1 hour ago