Morgensen Software Corp. has assembled the following data for the years ending December 31, 2021 and 2020. i (Click the icon to view the transaction data.) (Click the icon to view the current accounts.) Requirement 1. Prepare Morgensen's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities. Start by completing the cash flows from operating activities. Then complete the remaining sections of the statement of cash flows including the schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Morgensen Software Corp. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities Data table Current Accounts: Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Income tax payable Accrued liabilities $ December 31, 2020 2021 92,700 S 28,000 19,000 64,700 85.000 1,700 9,000 3,300 $ 57,700 $ 55,800 28,600 17,100 27,500 14,900 X More info Transaction Data for 2021: Acquisition of land by issuing long-term note payable Stock dividends Collection of loan Depreciation expense Purchase of building with cash Retirement of bonds payable by issuing common stock Purchase of long-term investment with cash $ Purchase of treasury stock. 198,000 Gain on sale of equipment 21,700 Payment of cash dividends 12,200 Issuance of long-term note 20,000 payable to borrow cash Net income 133,000 Issuance of common stock for cash 99,000 Proceeds from sale of equipment 45,200 Amortization expense $ 12,100 5,000 44.000 34,900 62.000 38,100 10,400 5,500 - X
Morgensen Software Corp. has assembled the following data for the years ending December 31, 2021 and 2020. i (Click the icon to view the transaction data.) (Click the icon to view the current accounts.) Requirement 1. Prepare Morgensen's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities. Start by completing the cash flows from operating activities. Then complete the remaining sections of the statement of cash flows including the schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Morgensen Software Corp. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for) operating activities: Net cash provided by (used for) operating activities Data table Current Accounts: Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Current liabilities: Accounts payable Income tax payable Accrued liabilities $ December 31, 2020 2021 92,700 S 28,000 19,000 64,700 85.000 1,700 9,000 3,300 $ 57,700 $ 55,800 28,600 17,100 27,500 14,900 X More info Transaction Data for 2021: Acquisition of land by issuing long-term note payable Stock dividends Collection of loan Depreciation expense Purchase of building with cash Retirement of bonds payable by issuing common stock Purchase of long-term investment with cash $ Purchase of treasury stock. 198,000 Gain on sale of equipment 21,700 Payment of cash dividends 12,200 Issuance of long-term note 20,000 payable to borrow cash Net income 133,000 Issuance of common stock for cash 99,000 Proceeds from sale of equipment 45,200 Amortization expense $ 12,100 5,000 44.000 34,900 62.000 38,100 10,400 5,500 - X
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.3DC
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Transcribed Image Text:Morgensen
Software Corp. has assembled the following data for the years ending December 31, 2021 and 2020.
(Click the icon to view the current accounts.)
i (Click the icon to view the transaction data.)
Requirement
1. Prepare Morgensen's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities.
Start by completing the cash flows from operating activities. Then complete the remaining sections of the statement of cash flows including the schedule of noncash investing and financing activities. (Use
parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)
Morgensen Software Corp.
Statement of Cash Flows (Indirect Method)
Year Ended December 31, 2021
Cash flows from operating activities:
Adjustments to reconcile net income to
net cash provided by (used for) operating activities:
Net cash provided by (used for) operating activities
Data table
Current Accounts:
Current assets:
Cash and cash equivalents
Accounts receivable
Inventories
Prepaid expenses
Current liabilities:
Accounts payable
Income tax payable
Accrued liabilities
$
December 31,
2020
2021
92,700 $ 28,000
19,000
9,000
64,700
85,000
1,700
3,300
$ 57,700 $ 55,800
28,600
17,100
14,900
27,500
X
More info
Transaction Data for 2021:
Acquisition of land by issuing
long-term note payable
Stock dividends
Collection of loan
Depreciation expense
Purchase of building
with cash
Retirement of bonds payable
by issuing common stock
Purchase of long-term
investment with cash
Purchase of treasury stock
$ 198,000 Gain on sale of equipment
21,700 Payment of cash dividends
12,200 Issuance of long-term note
20,000 payable to borrow cash
Net income
133,000 Issuance of common stock
for cash
99,000 Proceeds from sale of
equipment
45,200 Amortization expense
$ 12,100
5,000
44.000
34,900
62,000
38,100
10.400
5,500
- X
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