ndirect Method— Preparing a Statement of Cash Flows Kidman Corp. reported the following financial statements for the year ended December 31, 2020. Balance Sheet, December 31 2019 2020 Difference Cash and cash equivalents $14,400 $37,200 $22,800 Accounts receivable 11,400 9,000 (2,400) Merchandise inventory 18,600 35,400 16,800 Land 12,000 2,400 (9,600) Equipment 28,800 43,200 14,400 Accumulated depreciation (7,200) (14,400) (7,200) Total assets $78,000 $112,800 $34,800 Accounts payable $9,600 $10,800 $1,200 Notes payable, long-term 4,200 1,200 (3,000) Bonds payable -- 18,000 18,000 Common stock (no-par) 48,000 55,200 7,200 Retained earnings 16,200 27,600 11,400 Total liabilities and stockholders’ equity $78,000 $112,800 $34,800 Income Statement For Year Ended December 31, 2020 Revenues $91,200 Cost of goods sold 49,200 Depreciation 7,200 Other expenses 8,400 Loss on sale of land 6,000 Net income $20,400 Required Prepare the statement of cash flows for Kidman Corp. for the year ended December 31, 2020, using the indirect method. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Answer Adjustments Depreciation expense Answer Loss on sale of land Answer Decrease in accounts receivable Answer Increase in merchandise inventory Answer Increase in accounts payable Answer Net cash provided by operating activities Answer Cash flows from investing activities Sale of land Answer Purchase of equipment Answer Net cash used by investing activities Answer Cash flows from financing activities Payment on long-term note issuance Answer Issuance of bond payable Answer Issuance of common stock Answer Cash paid for dividends Answer Net cash provided by financing activities Answer Net increase in cash and cash equivalents during 2020 Answer Cash and cash equivalents, January 1, 2020 Answer Cash and cash equivalents, December 31, 2020 Answer
ndirect Method— Preparing a Statement of Cash Flows Kidman Corp. reported the following financial statements for the year ended December 31, 2020. Balance Sheet, December 31 2019 2020 Difference Cash and cash equivalents $14,400 $37,200 $22,800 Accounts receivable 11,400 9,000 (2,400) Merchandise inventory 18,600 35,400 16,800 Land 12,000 2,400 (9,600) Equipment 28,800 43,200 14,400 Accumulated depreciation (7,200) (14,400) (7,200) Total assets $78,000 $112,800 $34,800 Accounts payable $9,600 $10,800 $1,200 Notes payable, long-term 4,200 1,200 (3,000) Bonds payable -- 18,000 18,000 Common stock (no-par) 48,000 55,200 7,200 Retained earnings 16,200 27,600 11,400 Total liabilities and stockholders’ equity $78,000 $112,800 $34,800 Income Statement For Year Ended December 31, 2020 Revenues $91,200 Cost of goods sold 49,200 Depreciation 7,200 Other expenses 8,400 Loss on sale of land 6,000 Net income $20,400 Required Prepare the statement of cash flows for Kidman Corp. for the year ended December 31, 2020, using the indirect method. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Answer Adjustments Depreciation expense Answer Loss on sale of land Answer Decrease in accounts receivable Answer Increase in merchandise inventory Answer Increase in accounts payable Answer Net cash provided by operating activities Answer Cash flows from investing activities Sale of land Answer Purchase of equipment Answer Net cash used by investing activities Answer Cash flows from financing activities Payment on long-term note issuance Answer Issuance of bond payable Answer Issuance of common stock Answer Cash paid for dividends Answer Net cash provided by financing activities Answer Net increase in cash and cash equivalents during 2020 Answer Cash and cash equivalents, January 1, 2020 Answer Cash and cash equivalents, December 31, 2020 Answer
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter12A: The Statement Of Cash Flows
Section: Chapter Questions
Problem 1P: Mahoney Company has the following financial statements for 2017 and 2018. Assume that the purchase...
Related questions
Question
Indirect Method— Preparing a Statement of Cash Flows
Kidman Corp. reported the following financial statements for the year ended December 31, 2020.
2019 | 2020 | Difference | |
---|---|---|---|
Cash and cash equivalents | $14,400 | $37,200 | $22,800 |
11,400 | 9,000 | (2,400) | |
Merchandise inventory | 18,600 | 35,400 | 16,800 |
Land | 12,000 | 2,400 | (9,600) |
Equipment | 28,800 | 43,200 | 14,400 |
(7,200) | (14,400) | (7,200) | |
Total assets | $78,000 | $112,800 | $34,800 |
Accounts payable | $9,600 | $10,800 | $1,200 |
Notes payable, long-term | 4,200 | 1,200 | (3,000) |
Bonds payable | -- | 18,000 | 18,000 |
Common stock (no-par) | 48,000 | 55,200 | 7,200 |
16,200 | 27,600 | 11,400 | |
Total liabilities and |
$78,000 | $112,800 | $34,800 |
Income Statement For Year Ended December 31, 2020 |
|
---|---|
Revenues | $91,200 |
Cost of goods sold | 49,200 |
Depreciation | 7,200 |
Other expenses | 8,400 |
Loss on sale of land | 6,000 |
Net income | $20,400 |
Required
Prepare the statement of cash flows for Kidman Corp. for the year ended December 31, 2020, using the indirect method.
Statement of Cash Flows | |
---|---|
For the Year Ended December 31, 2020 | |
Cash flows from operating activities | |
Net income | Answer |
Adjustments | |
Depreciation expense
|
Answer |
Loss on sale of land
|
Answer |
Decrease in accounts receivable
|
Answer |
Increase in merchandise inventory
|
Answer |
Increase in accounts payable
|
Answer |
Net cash provided by operating activities | Answer |
Cash flows from investing activities | |
Sale of land | Answer |
Purchase of equipment | Answer |
Net cash used by investing activities | Answer |
Cash flows from financing activities | |
Payment on long-term note issuance | Answer |
Issuance of bond payable | Answer |
Issuance of common stock | Answer |
Cash paid for dividends | Answer |
Net cash provided by financing activities | Answer |
Net increase in cash and cash equivalents during 2020 | Answer |
Cash and cash equivalents, January 1, 2020 | Answer |
Cash and cash equivalents, December 31, 2020 | Answer |
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 3 steps with 2 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
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
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
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning