On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. Current Year Prior Year Cash $65,000 $54,000 Accounts Receivable (net) 78,000 85,000 Inventories 106,500 90,000 Land - 20,000 Equipment 495,000 370,000 Accumulated Depreciation (215,000) (158,000) $ 529,500 $461,000 Accounts Payable (merchandise creditors) $53,500 $55,000 Common Stock, $10 par 200,000 170,000 Paid-In Capital in Excess of Par—Common Stock 62,000 60,000 Retained Earnings 214,000 176,000 $ 529,500 $461,000 Branch Co. Statement of Cash Flows For Year Ended December 31 Cash flows from operating activities: $fill in the blank 2 Adjustments to reconcile net income to net cash flow from operating activities: $fill in the blank 4 fill in the blank 6 Changes in current operating assets and liabilities: fill in the blank 8 fill in the blank 10 fill in the blank 12 Net cash flow from operating activities $fill in the blank 13 Cash flows from investing activities: $fill in the blank 15 fill in the blank 17 Net cash flow used for investing activities fill in the blank 18 Cash flows from financing activities: $fill in the blank 20 fill in the blank 22 Net cash flow provided by financing activities fill in the blank 23 $fill in the blank 25 Cash at the beginning of the year fill in the blank 26 Cash at the end of the year $fill in the blank 27

On the basis of the following data for Branch Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000. Current Year Prior Year Cash $65,000 $54,000 Accounts Receivable (net) 78,000 85,000 Inventories 106,500 90,000 Land - 20,000 Equipment 495,000 370,000 Accumulated Depreciation (215,000) (158,000) $ 529,500 $461,000 Accounts Payable (merchandise creditors) $53,500 $55,000 Common Stock, $10 par 200,000 170,000 Paid-In Capital in Excess of Par—Common Stock 62,000 60,000 Retained Earnings 214,000 176,000 $ 529,500 $461,000 Branch Co. Statement of Cash Flows For Year Ended December 31 Cash flows from operating activities: $fill in the blank 2 Adjustments to reconcile net income to net cash flow from operating activities: $fill in the blank 4 fill in the blank 6 Changes in current operating assets and liabilities: fill in the blank 8 fill in the blank 10 fill in the blank 12 Net cash flow from operating activities $fill in the blank 13 Cash flows from investing activities: $fill in the blank 15 fill in the blank 17 Net cash flow used for investing activities fill in the blank 18 Cash flows from financing activities: $fill in the blank 20 fill in the blank 22 Net cash flow provided by financing activities fill in the blank 23 $fill in the blank 25 Cash at the beginning of the year fill in the blank 26 Cash at the end of the year $fill in the blank 27

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 4PA

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Question

Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000. The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000.

	Current Year	Prior Year
Cash	$65,000	$54,000
Accounts Receivable (net)	78,000	85,000
Inventories	106,500	90,000
Land	-	20,000
Equipment	495,000	370,000
Accumulated Depreciation	(215,000)	(158,000)
	$ 529,500	$461,000

Accounts Payable (merchandise creditors)	$53,500	$55,000
Common Stock, $10 par	200,000	170,000
Paid-In Capital in Excess of Par—Common Stock	62,000	60,000
Retained Earnings	214,000	176,000
	$ 529,500	$461,000

Branch Co.
Statement of Cash Flows
For Year Ended December 31
Cash flows from operating activities:
	$fill in the blank 2
Adjustments to reconcile net income to net cash flow from operating activities:
	$fill in the blank 4
	fill in the blank 6
Changes in current operating assets and liabilities:
	fill in the blank 8
	fill in the blank 10
	fill in the blank 12
Net cash flow from operating activities		$fill in the blank 13
Cash flows from investing activities:
	$fill in the blank 15
	fill in the blank 17
Net cash flow used for investing activities		fill in the blank 18
Cash flows from financing activities:
	$fill in the blank 20
	fill in the blank 22
Net cash flow provided by financing activities		fill in the blank 23
		$fill in the blank 25
Cash at the beginning of the year		fill in the blank 26
Cash at the end of the year		$fill in the blank 27

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