PAS. LO 16.3 Use the following information from Dubuque Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. From the Dec. 31 2018 balance sheet, changes from prior year: Accounts Receivable Inventory Prepaid Insurance Accounts Payable $7.600 3,200 (2.000) (4,000) Page 3 of 14 OpenStax Principles of Accounting, Volume 1: Financial Accounting Chapter 16: Statement of Cash Flows Sales Tax Payable From the 2018 Income Statement: 1,900 Gain from sale of investments Depreciation Expense Net Income 12,000 26,500 79,300 Solution Operating Activities: Net Income Depreciation Expense Gain from sale of investments Accounts Receivable Inventory Prepaid Insurance Accounts Payable Sales Tax Payable Net cash flows from operating activities

PAS. LO 16.3 Use the following information from Dubuque Company's financial statements to prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. From the Dec. 31 2018 balance sheet, changes from prior year: Accounts Receivable Inventory Prepaid Insurance Accounts Payable $7.600 3,200 (2.000) (4,000) Page 3 of 14 OpenStax Principles of Accounting, Volume 1: Financial Accounting Chapter 16: Statement of Cash Flows Sales Tax Payable From the 2018 Income Statement: 1,900 Gain from sale of investments Depreciation Expense Net Income 12,000 26,500 79,300 Solution Operating Activities: Net Income Depreciation Expense Gain from sale of investments Accounts Receivable Inventory Prepaid Insurance Accounts Payable Sales Tax Payable Net cash flows from operating activities

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 12.24MCE

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(Appendix 21.1) Operating Cash Flows Refer to the information for Lamberson Company in P21-6. Required: 1. Using the direct method, prepare the operating activities section of the 2019 statement of cash flows for Lamberson. 2. (Optional). If you completed P21-6 earlier, prepare the remaining portion of the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Ratio Analysis Consider the following information taken from Chicago Water Slides (CWSs) financial statements: Also, CWSs operating cash flows were $25,658 and $29,748 in 2019 and 2018, respectively. Note: Round all answers to two decimal places. Required: 1. Calculate the current ratios for 2019 and 2018. 2. Calculate the quick ratios for 2019 and 2018. 3. Calculate the cash ratios for 2019 and 2018. 4. Calculate the operating cash flow ratios for 2019 and 2018. 5. CONCEPTUAL CONNECTION Provide some reasons why CWSs liquidity may be considered to be improving and some reasons why it may be worsening.
(Appendix 21.1) Operating Cash Flows The following is accounting information taken from Woodrail Companys adjusted trial balance for 2019: In addition, the following changes occurred in selected accounts during 2019: Required: Using the direct method, prepare the cash flows from operating activities section of the 2019 statement of cash flows for Woodrail.
Statement of cash flowsdirect method applied to PR 14-1B The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2016 and 2015, is: Dec. 31,2016 Dec. 31.201S Assets Cash 70,720 47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments. 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciationequipment (99,110) (84,320) Total assets 1,21,760 901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 205,700 194,140 Accrued expenses payable (operating expenses! 30,600 26,860 Dividends payable 25,500 20,400 Common stock. Si par. 202,000 102,000 Paid in capital: Excess of issue price over parcommon stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders equity 1,211,760 901,680 The income statement for the year ended December 31, 2016, is as follows: Sales- 2,023,898 Cost of merchandise sold 1,245,476 Gross profit 778,422 Operating expenses: Depreciation expense 14,790 Other operating expenses 517,299 Total operating expenses 532,089 Operating income 246,333 Other expenses: Loss on sale of investments (10,200) Income before income tax 236,133 Income tax expense- 94,453 Net income- 141,680 Additional data obtained from an examination of the accounts in the ledger for 2016 are as follows: a. Equipment and land were acquired for cash. b. There were no disposals of equipment during the year. c. The investments were sold for 91,800 cash. d. The common stock was issued for cash. e. There was a 102,000 debit to Retained Laming for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities.
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