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tement of Cash Flows (Indirect Method) eWolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below. WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 ales Revenue 5698.500 ost of Goods Sold $473.000 94.600 Nages Expense mourance Expense Depredation Expense interest Expense income Tax Expense 8.800 18.700 9.900 31.900 636.900 Net income S61.600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12.100 $5.500 Accounts Recenvable 45100 35.200 Inventory 99.000 66.000 Prepaid insuurance 5.500 7,700 Plart Assets 275.000 214.500 Accumulated Depreciation Total Assets (7400) 56.100) $361.900 $272.800 Liabilities and Stockholders Equity Accounts Payable $7.700 $11.000 Wages Payable 9.900 6.600 income Tax Payable 7.700 800 Bonds Payable Common Stock 143.000 82.500 99.000 90.000 Retaned Earrings 94600 64.900 Total Liablibes and Stockholders tquity $361.900 $272.00 Cash dividends of $31,900 were declared and paid during 2013. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise p Required a Calculate the change in cash that occurred duning 2013. b. Prepare a statement of cash flows using the indirect method. Compute free cash flow.

tement of Cash Flows (Indirect Method) eWolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below. WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 ales Revenue 5698.500 ost of Goods Sold $473.000 94.600 Nages Expense mourance Expense Depredation Expense interest Expense income Tax Expense 8.800 18.700 9.900 31.900 636.900 Net income S61.600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12.100 $5.500 Accounts Recenvable 45100 35.200 Inventory 99.000 66.000 Prepaid insuurance 5.500 7,700 Plart Assets 275.000 214.500 Accumulated Depreciation Total Assets (7400) 56.100) $361.900 $272.800 Liabilities and Stockholders Equity Accounts Payable $7.700 $11.000 Wages Payable 9.900 6.600 income Tax Payable 7.700 800 Bonds Payable Common Stock 143.000 82.500 99.000 90.000 Retaned Earrings 94600 64.900 Total Liablibes and Stockholders tquity $361.900 $272.00 Cash dividends of $31,900 were declared and paid during 2013. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise p Required a Calculate the change in cash that occurred duning 2013. b. Prepare a statement of cash flows using the indirect method. Compute free cash flow.

Financial Accounting: The Impact on Decision Makers
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 12.7E
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Statement of Cash Flows (Indirect Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $698,500 Cost of Goods Sold $473,000 Wages Expense 94,600 Insurance Expense 8,800 Depreciation Expense 18,700 Interest Expense 9,900 Income Tax Expense 31,900 636,900 Net Income $61,600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12,100 $5,500 Accounts Receivable 45,100 35,200 Inventory 99,000 66,000 Prepaid Insurance 5,500 7,700 Plant Assets 275,000 214,500 Accumulated Depreciation (74,800) (56,100) Total Assets $361,900 $272,800 Liabilities and Stockholders'' Equity Accounts Payable $7,700 $11,000 Wages Payable Income Tax Payable 9,900 6,600 7,700 8,800 Bonds Payable 143,000 82,500 Common Stock 99,000 99,000 Retained Earnings 94,600 64,900 Total Liabilities and Stockholders' Equity $361,900 $272,800 Cash dividends of $31,900 were declared and paid during 2013. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during 2013. b. Prepare a statement of cash flows using the indirect method. C. Compute free cash flow.
Transcribed Image Text:Statement of Cash Flows (Indirect Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $698,500 Cost of Goods Sold $473,000 Wages Expense 94,600 Insurance Expense 8,800 Depreciation Expense 18,700 Interest Expense 9,900 Income Tax Expense 31,900 636,900 Net Income $61,600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12,100 $5,500 Accounts Receivable 45,100 35,200 Inventory 99,000 66,000 Prepaid Insurance 5,500 7,700 Plant Assets 275,000 214,500 Accumulated Depreciation (74,800) (56,100) Total Assets $361,900 $272,800 Liabilities and Stockholders'' Equity Accounts Payable $7,700 $11,000 Wages Payable Income Tax Payable 9,900 6,600 7,700 8,800 Bonds Payable 143,000 82,500 Common Stock 99,000 99,000 Retained Earnings 94,600 64,900 Total Liabilities and Stockholders' Equity $361,900 $272,800 Cash dividends of $31,900 were declared and paid during 2013. Plant assets were purchased for cash and bonds payable were issued for cash. Bond interest is paid semi-annually on June 30 and December 31. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during 2013. b. Prepare a statement of cash flows using the indirect method. C. Compute free cash flow.
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