Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and incom statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Current Year Previous Year $ 6,140 820 4,620 (1,340) $ 10,240 $ 580 580 1,700 4,200 3,180 $ 10,240 $ 41,100 38,600 170 1,000 $ 1,330 $ 3,680 1,590 4,200 (1,170) $ 8,300 $ 1,000 750 500 4,200 1,850 $ 8,300 Additional Data: . Bought new hockey equipment for cash, $420. b. Borrowed $1,200 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. Required: . Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted hould be indicated with a minus sign.)
Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and incom statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Current Year Previous Year $ 6,140 820 4,620 (1,340) $ 10,240 $ 580 580 1,700 4,200 3,180 $ 10,240 $ 41,100 38,600 170 1,000 $ 1,330 $ 3,680 1,590 4,200 (1,170) $ 8,300 $ 1,000 750 500 4,200 1,850 $ 8,300 Additional Data: . Bought new hockey equipment for cash, $420. b. Borrowed $1,200 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. Required: . Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted hould be indicated with a minus sign.)
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 36P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,