he comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $277,770 $258,990 Accounts receivable (net) 100,630 93,020 Inventories 284,060 275,390 Investments 0 106,700 Land 145,700 0 Equipment 313,410 243,490 Accumulated depreciation-equipment (73,370) (65,660) Total assets $1,048,200 $911,930 Liabilities and Stockholders' Equity Accounts payable $189,720 $179,650 Accrued expenses payable 18,870 23,710 Dividends payable 10,480 8,210 Common stock, $10 par 56,600 44,680 Paid-in capital: Excess of issue price over par-common stock 212,780 124,020 Retained earnings 559,750 531,660 Total liabilities and stockholders’ equity $1,048,200 $911,930 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,566,470 Cost of merchandise sold 645,000 Gross profit $921,470 Operating expenses: Depreciation expense $7,710 Other operating expenses 813,490 Total operating expenses 821,200 Operating income $100,270 Other expense: Loss on sale of investments (28,810) Income before income tax $71,460 Income tax expense 22,870 Net income $48,590 Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $77,890 cash. The common stock was issued for cash. There was a $20,500 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Canace Products Inc. Statement of Cash Flows For the Year Ended December 31, 20Y6 Cash flows from operating activities: $fill in the blank 2 fill in the blank 4 fill in the blank 6 fill in the blank 8 Net cash flow from operating activities $fill in the blank 9 Cash flows from (used for) investing activities: $fill in the blank 11 fill in the blank 13 fill in the blank 15 Net cash flow used for investing activities fill in the blank 16 Cash flows from (used for) financing activities: $fill in the blank 18 fill in the blank 20 Net cash flow from financing activities fill in the blank 21 $fill in the blank 23 Cash at the beginning of the year fill in the blank 24 Cash at the end of the year $fill in the
he comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows: Dec. 31, 20Y6 Dec. 31, 20Y5 Assets Cash $277,770 $258,990 Accounts receivable (net) 100,630 93,020 Inventories 284,060 275,390 Investments 0 106,700 Land 145,700 0 Equipment 313,410 243,490 Accumulated depreciation-equipment (73,370) (65,660) Total assets $1,048,200 $911,930 Liabilities and Stockholders' Equity Accounts payable $189,720 $179,650 Accrued expenses payable 18,870 23,710 Dividends payable 10,480 8,210 Common stock, $10 par 56,600 44,680 Paid-in capital: Excess of issue price over par-common stock 212,780 124,020 Retained earnings 559,750 531,660 Total liabilities and stockholders’ equity $1,048,200 $911,930 The income statement for the year ended December 31, 20Y6, is as follows: Sales $1,566,470 Cost of merchandise sold 645,000 Gross profit $921,470 Operating expenses: Depreciation expense $7,710 Other operating expenses 813,490 Total operating expenses 821,200 Operating income $100,270 Other expense: Loss on sale of investments (28,810) Income before income tax $71,460 Income tax expense 22,870 Net income $48,590 Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows: Equipment and land were acquired for cash. There were no disposals of equipment during the year. The investments were sold for $77,890 cash. The common stock was issued for cash. There was a $20,500 debit to Retained Earnings for cash dividends declared. Required: Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Canace Products Inc. Statement of Cash Flows For the Year Ended December 31, 20Y6 Cash flows from operating activities: $fill in the blank 2 fill in the blank 4 fill in the blank 6 fill in the blank 8 Net cash flow from operating activities $fill in the blank 9 Cash flows from (used for) investing activities: $fill in the blank 11 fill in the blank 13 fill in the blank 15 Net cash flow used for investing activities fill in the blank 16 Cash flows from (used for) financing activities: $fill in the blank 18 fill in the blank 20 Net cash flow from financing activities fill in the blank 21 $fill in the blank 23 Cash at the beginning of the year fill in the blank 24 Cash at the end of the year $fill in the
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter13: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PB: Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December...
Related questions
Question
Statement of Cash Flows—Direct Method
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:
Dec. 31, 20Y6 | Dec. 31, 20Y5 | ||||
Assets | |||||
Cash | $277,770 | $258,990 | |||
100,630 | 93,020 | ||||
Inventories | 284,060 | 275,390 | |||
Investments | 0 | 106,700 | |||
Land | 145,700 | 0 | |||
Equipment | 313,410 | 243,490 | |||
(73,370) | (65,660) | ||||
Total assets | $1,048,200 | $911,930 | |||
Liabilities and |
|||||
Accounts payable | $189,720 | $179,650 | |||
Accrued expenses payable | 18,870 | 23,710 | |||
Dividends payable | 10,480 | 8,210 | |||
Common stock, $10 par | 56,600 | 44,680 | |||
Paid-in capital: Excess of issue price over par-common stock | 212,780 | 124,020 | |||
559,750 | 531,660 | ||||
Total liabilities and stockholders’ equity | $1,048,200 | $911,930 |
The income statement for the year ended December 31, 20Y6, is as follows:
Sales | $1,566,470 | ||||
Cost of merchandise sold | 645,000 | ||||
Gross profit | $921,470 | ||||
Operating expenses: | |||||
Depreciation expense | $7,710 | ||||
Other operating expenses | 813,490 | ||||
Total operating expenses | 821,200 | ||||
Operating income | $100,270 | ||||
Other expense: | |||||
Loss on sale of investments | (28,810) | ||||
Income before income tax | $71,460 | ||||
Income tax expense | 22,870 | ||||
Net income | $48,590 |
Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:
- Equipment and land were acquired for cash.
- There were no disposals of equipment during the year.
- The investments were sold for $77,890 cash.
- The common stock was issued for cash.
- There was a $20,500 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate
Canace Products Inc. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y6 | ||
Cash flows from operating activities: | ||
$fill in the blank 2 | ||
fill in the blank 4 | ||
fill in the blank 6 | ||
fill in the blank 8 | ||
Net cash flow from operating activities | $fill in the blank 9 | |
Cash flows from (used for) investing activities: | ||
$fill in the blank 11 | ||
fill in the blank 13 | ||
fill in the blank 15 | ||
Net cash flow used for investing activities | fill in the blank 16 | |
Cash flows from (used for) financing activities: | ||
$fill in the blank 18 | ||
fill in the blank 20 | ||
Net cash flow from financing activities | fill in the blank 21 | |
$fill in the blank 23 | ||
Cash at the beginning of the year | fill in the blank 24 | |
Cash at the end of the year | $fill in the blank 25 |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,