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Chapter 13 Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Ү3 Dec. 31, 20Y2 Assets Cash $224,990 $211,470 Accounts receivable (net) 81,510 75,950 Inventories 230,080 224,860 Investments 87,120 Land 118,020 Equipment 253,860 198,810 Accumulated depreciation-equipment (59,430) (53,610) Total assets $849,030 $744,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $153,670 $146,690 Accrued expenses payable (operating expenses) 15,280 19,360 Dividends payable 8,490 6,700 Common stock, $10 par 45,850 36,490 Paid-in capital: Excess of issue price over par-common stock 172,350 101,270 Retained earnings 453,390 434,090 Total liabilities and stockholders' equity $849,030 $744,600 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $101,930 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $54,300 credit to Retained Earnings for net income. f. There was a $35,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities Changes in current operabing assets and labilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year

Chapter 13 Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Ү3 Dec. 31, 20Y2 Assets Cash $224,990 $211,470 Accounts receivable (net) 81,510 75,950 Inventories 230,080 224,860 Investments 87,120 Land 118,020 Equipment 253,860 198,810 Accumulated depreciation-equipment (59,430) (53,610) Total assets $849,030 $744,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $153,670 $146,690 Accrued expenses payable (operating expenses) 15,280 19,360 Dividends payable 8,490 6,700 Common stock, $10 par 45,850 36,490 Paid-in capital: Excess of issue price over par-common stock 172,350 101,270 Retained earnings 453,390 434,090 Total liabilities and stockholders' equity $849,030 $744,600 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $101,930 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $54,300 credit to Retained Earnings for net income. f. There was a $35,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities Changes in current operabing assets and labilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 13.1APR
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Chapter 13 Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Ү3 Dec. 31, 20Y2 Assets Cash $224,990 $211,470 Accounts receivable (net) 81,510 75,950 Inventories 230,080 224,860 Investments 87,120 Land 118,020 Equipment 253,860 198,810 Accumulated depreciation-equipment (59,430) (53,610) Total assets $849,030 $744,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $153,670 $146,690 Accrued expenses payable (operating expenses) 15,280 19,360 Dividends payable 8,490 6,700 Common stock, $10 par 45,850 36,490 Paid-in capital: Excess of issue price over par-common stock 172,350 101,270 Retained earnings 453,390 434,090 Total liabilities and stockholders' equity $849,030 $744,600 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $101,930 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $54,300 credit to Retained Earnings for net income. f. There was a $35,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities:
Transcribed Image Text:Chapter 13 Statement of Cash Flows-Indirect Method The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows: Dec. 31, 20Ү3 Dec. 31, 20Y2 Assets Cash $224,990 $211,470 Accounts receivable (net) 81,510 75,950 Inventories 230,080 224,860 Investments 87,120 Land 118,020 Equipment 253,860 198,810 Accumulated depreciation-equipment (59,430) (53,610) Total assets $849,030 $744,600 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $153,670 $146,690 Accrued expenses payable (operating expenses) 15,280 19,360 Dividends payable 8,490 6,700 Common stock, $10 par 45,850 36,490 Paid-in capital: Excess of issue price over par-common stock 172,350 101,270 Retained earnings 453,390 434,090 Total liabilities and stockholders' equity $849,030 $744,600 Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows: a. The investments were sold for $101,930 cash. b. Equipment and land were acquired for cash. C. There were no disposals of equipment during the year. d. The common stock was issued for cash. e. There was a $54,300 credit to Retained Earnings for net income. f. There was a $35,000 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Livers Inc. Statement of Cash Flows For the Year Ended December 31, 20Y3 Cash flows from operating activities:
Adjustments to reconcile net income to net cash flow from operating activities Changes in current operabing assets and labilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
Transcribed Image Text:Adjustments to reconcile net income to net cash flow from operating activities Changes in current operabing assets and labilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
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