Statement of Cash Flows-Indirect MethodThe comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 208, is as follows:Dec. 31, 20Y9 Dec. 31, 20Y8AssetsbourCash$245,780$227,580Accounts receivable (net)89,040wolt es to81,740Inventories251,340241,990woll eInvestments93,760Land128,920rlanEquipmentAccumulated depreciation-equipment277,310213,960wa vot bi ste(64,920)(57,700)Total assets$927,470$801,330sot blo dasLiabilities and Stockholders' Equity29divitos onuasvnt dee teAccounts payable (merchandise creditors)Accrued expenses payable (operating expenses)$167,870$157,86016,69020,830Dividends payable9,270p7,210Common stock, $10 par50,08039,270Paid-in capital in excess of par-common stock188,280108,980ebnabivib o bls edRetained earnings495,280467,180Total liabilities and stockholders' equity$927,470$801,330vibs paoneril mont wot eo foAdditional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: ia. Equipment and land were acquired for cash.b. There were no disposals of equipment during the year.c. The investments were sold for $109,700 cash.evas eunstonalsd need. The common stock was issued for cash.eYos 18 19dmsoodansled tese. There was a $65,760 credit to Retained Earnings for net income.f. There was a $37,660 debit to Retained Earnings for cash dividends declared.Required:Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Usethe minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.Merrick Equipment Co.Statement of Cash FlowsFor the Year Ended December 31, 20Y9Cash flows from (used for) operating activities:$Net incomeAdjustments to reconcile net income to net cash flow from operating activities:DepreciationLoss on sale of investmentsChanges in current operating assets and liabilities:attps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false CengageNOIncrease in accounts receivableIncrease in inventoriesIncrease in accounts pavable ndBYOS E d eYos ,tEaIncrease in accrued expenses payableNet cash flow from operating activities 1824(t0) sidevisogOP0.88Cash flows from (used for) investing activities:3se0Cash received from loss on sale of investments%$4airCash paid for purchase of landInsmglups-noltsbangab be(ed'aso)082Cash paid for purchase of equipmentNet cash flow used for investing activitiesylupa 'aneblordalboie bne aai(210tibono salibnisoern) sldsyCash flows from (used for) financing activities:OE8,0SCash received from sale of common stock(29enagx9 pnits1sqo) eldsyeq asens$4sldsy080,02Cash paid for dividends08e,801088,881bota normmo-16g to 2290x9 ni08S,22Net cash flow from financing activitiesVaiupe 2sblorlbot2 bns6 PYOS 10l 1opbal s ni etnuop6 ard to nojenimaxs n mor baniesdoNet increase in cash.r26 1ot baniupos e19w bnsl bru169Y si pniub insmqiups to alszogaib o.deso 00,e012 1 bioz s1sw anCash balance, January 1, 20Y9Cash balance, December 31, 20Y9smoɔni jan 10t epnims3 benisisA of Jibs15-0a5,2abstsloob abnsbivib rlass 1ot epriims3 benis o idab 03a,tePDETOO mol 2won des onns2ng lo bordtem Jbanont enz pnieu,wol raso to ireewoli de60 lo trometsieeYos e 1odms20 bebn 15SY sd 1oe00 mont wolt deso to o omooni ton sbn

Statement of cash flow is one of the most important financial statements which is prepared to record…

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter13: Statement Of Cash Flows

Section: Chapter Questions

Problem 3PA: Statement of cash flowsindirect method The comparative balance sheet of Whitman Co. at December 31,...

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Statement of cash flowsindirect method The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Statement of Cash Flows The following are Mueller Companys cash flow activities: a. Net income, 68,000 b. Increase in accounts receivable, 4,400 c. Receipt from sale of common stock, 12,300 d. Depreciation expense, 11,300 e. Dividends paid, 24,500 f. Payment for purchase of building, 65,000 g. Bond discount amortization, 2,700 h. Receipt from sale of long-term investments at cost, 10,600 i. Payment for purchase of equipment, 8,000 j. Receipt from sale of preferred stock, 20,000 k. Increase in income taxes payable, 3,500 l. Payment for purchase of land, 9,700 m. Decrease in accounts payable, 2,900 n. Increase in inventories, 10,300 o. Beginning cash balance, 18,000 Required: Prepare Mueller Company's statement of cash flows.
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Statement of cash flowsindirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, 250,000. b. Depreciation reported on the income statement, 135,000. c. Equipment was purchased at a cost of 420,000 and fully depreciated equipment costing 90,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 30,000 shares of common stock were issued at 20 for cash. f. Cash dividends declared and paid, 45,000. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
Statement of Cash Flows The following are several items involving Tejera Companys cash flow activities: a. Net income, 60,400 b. Receipt from issuance of common stock, 32,000 c. Payment for purchase of equipment, 41,500 d. Payment for purchase of land, 19,600 e. Depreciation expense, 20,500 f. Patent amortization expense, 1,200 g. Payment of dividends, 21,000 h. Decrease in salaries payable, 2,600 i. Increase in accounts receivable, 10,300 j. Beginning cash balance, 30,700 Required: Prepare Tejeras statement of cash flows using the direct method.
Classification of Cash Flows Patel Company reported the following items in its statement of cash flows presented using the indirect method. a. Issuance of common stock b. Cash paid for interest c. Sold equipment for cash d. Receipt of cash dividend on investment e. Repayment of principal on long-term debt f. Loss on disposal of equipment. Required: Indicate whether each item should be classified as a cash flow from operating activities, a cash flow from investing activities, a cash flow from financing activities. Use the following information for Cornerstone Exercises 11-16 and 11-17: A review of the balance sheet of Peterson Inc. revealed the following changes in the account balances: a. Increase in long-term investment b Increase in accounts receivable c. Increase in common stock d. Increase in long-term debt e. Decrease in accounts payable f. Decrease in supplies inventory g. Increase in prepaid insurance h. Decrease in retained earnings
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-9A for Horn Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for Horn Company for the year ended December 31, 20-2. 2. A partial statement of cash flows for Horn Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.
COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Powell Companys condensed income statement for the year ended December 31, 20-2, was as follows: Additional information obtained from Horns comparative balance sheet and auxiliary records as of December 31, 20-2 and 20-1, was as follows: Depreciation expense for 20-2, included in operating expenses on the income statement, was 32,000. REQUIRED Prepare a partial statement of cash flows reporting cash provided by operating activities for the year ended December 31, 20-2. SCHEDULE FOR CALCULATION OF CASH GENERATED FROM OPERATING ACTIVITIES Using the information provided in Problem 23-11B for Powell Company, prepare the following: 1. A schedule for the calculation of cash generated from operating activities for Powell Company for the year ended December 31, 20-2. 2. A partial statement of cash flows for Powell Company reporting cash from operating activities under the direct method for the year ended December 31, 20-2.