(Supplement C) Preparing a Statement of Cash Flows, Indirect Method: Complete Spreadsheet
An analysis of accounts follows:
a.Purchased equipment. $19,000, and issued capital stock in full payment.
b.Purchased a long-term investment for cash, $15,000.
c. Paid cash dividend, $10,000.
d.Sold operational as set for 56,000 cash (cost, $21,000, accumulated depreciation $15,000).
e.Sold capital stock, 300 shares at $12 per share cash.
Beginning Balances, | ANALYSIS OF CHANGES | Ending Balances, | ||
Items from Financial Statements | 12/31/2012 | Debit | Credit | 12/3 1/2 013 |
Income statement items | ||||
Sales | $140,000 | |||
Cost of goods sold |
| $59,000 | ||
Depreciation |
| 5,000 | ||
Wage expense |
| 28,000 | ||
Income tax expense |
| 9,000 | ||
Interest expense |
| 5,000 | ||
Remaining expenses |
| 15,800 | ||
Net income |
| 18,200 | ||
Balance sheetitems |
|
|
|
|
Cash | $20,500 |
|
| $18,800 |
Accounts receivable | 22,000 |
|
| 22,000 |
Merchandise inventory | 68,000 |
|
| 75,000 |
Investments. long-terms | - |
|
| 15.000 |
Equipment | 114,500 |
|
| 112,500 |
Total debits | $225,000 |
|
| $243,300 |
Accumulated depreciation | $32,000 |
|
| $22,000 |
Accounts payable | 17,000 |
|
| 14,000 |
Wages payable | 2,500 |
|
| 1,500 |
Income taxes payable | 3,000 |
|
| 4,500 |
Bonds payable | 54,000 |
|
| 54,000 |
Common stock. no par 100,000 | 100,000 |
|
| 122,600 |
Retained earnings | 16,500 |
|
| 24,700 |
Total credits | $225,000 |
|
| $243,00 |
|
| Inflows | Outflows |
|
Statement of cash flows Cash flows from operating activities: Cash flows, from investing activities: Cash flows, from financing activities : Net increase (decrease) in cash Totals | ||||
Required:
Complete the spreadsheet for the statement of cash flows using the indirect method.
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