Homework Help is Here – Start Your Trial Now!
Business
Accounting
Shee October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent 450,000 385,400 185,000 45,000 650,100 1,715,500 350,000 440,850 185,000 Accounts Receivable Inventory Prepaid expenses Equipment, net 410,100 1,385,950 Total Assets Liabilities Accounts payable 198,500 145,000 345,900 Accrued liabilities Bond payable Stockholders' Equity: 225,550 222,222 Common Stock 245,000 931,655 (150,555) 193,230 844,948 (100,000) Retained earnings Treasury stock Total liabilities and stockholders' eguity 1716 6 0

Shee October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent 450,000 385,400 185,000 45,000 650,100 1,715,500 350,000 440,850 185,000 Accounts Receivable Inventory Prepaid expenses Equipment, net 410,100 1,385,950 Total Assets Liabilities Accounts payable 198,500 145,000 345,900 Accrued liabilities Bond payable Stockholders' Equity: 225,550 222,222 Common Stock 245,000 931,655 (150,555) 193,230 844,948 (100,000) Retained earnings Treasury stock Total liabilities and stockholders' eguity 1716 6 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

The owners are concerned about the movement in the company’s
cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an
increase or decrease in this area. The company uses the indirect method to prepare the statement of cash flows and it is
expected that this should be able to provide the needed clarity required by the owners.

1.Prepare a complete statement of cash flows for October 2021 using the indirect method based on the information
and guidance provided above.

Income Statement Year Ended October 31,2021 Revenues and gains: Sales revenue 1,045,000 12,000 Interest revenue Total revenues and gains Expenses Cost of goods sold Salary expense Depreciation expense Rent expense 1,057,000 603,500 126,500 30,000 125,000 15,000 Loss on sale of equipment Total expenses 900,000 157,000 42,000 115,000 Income before income taxes Income tax expense Net Profit Notes Purchase of equipment Cash receipt from sale of equipment Issuance of bonds payable to borrow cash Cash receipt from issuance of common stock Dividend paid Book value of equipment sold Purchase of treasury stock 380,000 95,000 123,678 51,770 28,293 110,000 50,555
Transcribed Image Text:Income Statement Year Ended October 31,2021 Revenues and gains: Sales revenue 1,045,000 12,000 Interest revenue Total revenues and gains Expenses Cost of goods sold Salary expense Depreciation expense Rent expense 1,057,000 603,500 126,500 30,000 125,000 15,000 Loss on sale of equipment Total expenses 900,000 157,000 42,000 115,000 Income before income taxes Income tax expense Net Profit Notes Purchase of equipment Cash receipt from sale of equipment Issuance of bonds payable to borrow cash Cash receipt from issuance of common stock Dividend paid Book value of equipment sold Purchase of treasury stock 380,000 95,000 123,678 51,770 28,293 110,000 50,555
Comparative Balance Sheet October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent Accounts Receivable 450,000 385,400 185,000 45,000 650,100 1,715,500 350,000 440,850 185,000 Inventory Prepaid expenses Equipment, net 410,100 1,385,950 Total Assets Liabilities Accounts payable 198,500 145,000 345,900 Accrued liabilities 225,550 222,222 Bond payable Stockholders' Equity: Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 245,000 931,655 |(150,555) 1,715,500 193,230 844,948 (100,000) 1,385,950
Transcribed Image Text:Comparative Balance Sheet October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent Accounts Receivable 450,000 385,400 185,000 45,000 650,100 1,715,500 350,000 440,850 185,000 Inventory Prepaid expenses Equipment, net 410,100 1,385,950 Total Assets Liabilities Accounts payable 198,500 145,000 345,900 Accrued liabilities 225,550 222,222 Bond payable Stockholders' Equity: Common Stock Retained earnings Treasury stock Total liabilities and stockholders' equity 245,000 931,655 |(150,555) 1,715,500 193,230 844,948 (100,000) 1,385,950
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Balance Sheet Analysis
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS