1. Explanation Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company. Indirect method : Under indirect method, net income is reported first, and then non-cash expenses, losses from fixed assets, and changes in opening balances and ending balances of current assets are adjusted to reconcile the net income balance. Prepare the statement of cash flows of Corporation G for the year ended December 31, 2017 under indirect method. Corporation G Statement of cash flows – Indirect method For the year ended December 31, 2017 Particulars Amount Amount Cash flow from operating activities: Net Income $158,100 Adjustment to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash: Add: Depreciation expense $38,600 Add: Loss on sale of equipment $2,100 Changes in current assets and liabilities (Refer Table (2)) Add: Decrease in accounts receivable $3,650 Add: Decrease in inventory $10,100 Add: Decrease in prepaid expense $1,900 Less: Decrease in accounts payable ($84,250) Net cash provided by operating activities $130,200 Cash flow from investing activities: Cash proceeds from sale of equipment $26,050 Less: Cash paid for acquiring new equipment ($43,250) Net cash used in investing activities ($17,200) Cash flow from financing activities: 2. To determine Analyze and explain the statement of cash flows by highlighting the payment of cash dividend.

6th Edition

ISBN: 9781259726910

Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Question

Chapter 12, Problem 3BP

To determine

Prepare the statement of cash flows of Corporation G for the year ended December 31, 2017 using indirect method.

To determine

Analyze and explain the statement of cash flows by highlighting the payment of cash dividend.

Expert Solution & Answer

Chapter 12 Solutions

Financial Accounting Fundamentals

Ch. 12 - Prob. 1MCQ Ch. 12 - Prob. 2MCQ Ch. 12 - Prob. 3MCQ Ch. 12 - Prob. 4MCQ Ch. 12 - Prob. 5MCQ Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ

Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ Ch. 12 - Prob. 11DQ Ch. 12 - Prob. 12DQ Ch. 12 - Prob. 13DQ Ch. 12 - Prob. 14DQ Ch. 12 - Prob. 15DQ Ch. 12 - Prob. 1QS Ch. 12 - Prob. 2QS Ch. 12 - Prob. 3QS Ch. 12 - Prob. 4QS Ch. 12 - Prob. 5QS Ch. 12 - Prob. 6QS Ch. 12 - Prob. 7QS Ch. 12 - Prob. 8QS Ch. 12 - Prob. 9QS Ch. 12 - Prob. 10QS Ch. 12 - Prob. 11QS Ch. 12 - Prob. 12QS Ch. 12 - Prob. 13QS Ch. 12 - Prob. 14QS Ch. 12 - Prob. 15QS Ch. 12 - Prob. 16QS Ch. 12 - Prob. 17QS Ch. 12 - Prob. 18QS Ch. 12 - Prob. 19QS Ch. 12 - Prob. 20QS Ch. 12 - Prob. 1E Ch. 12 - Prob. 2E Ch. 12 - Prob. 3E Ch. 12 - Prob. 4E Ch. 12 - Prob. 5E Ch. 12 - Prob. 6E Ch. 12 - Prob. 7E Ch. 12 - Prob. 8E Ch. 12 - Prob. 9E Ch. 12 - Prob. 10E Ch. 12 - Prob. 11E Ch. 12 - Prob. 12E Ch. 12 - Prob. 13E Ch. 12 - Prob. 14E Ch. 12 - Prob. 15E Ch. 12 - Prob. 16E Ch. 12 - Prob. 17E Ch. 12 - Prob. 18E Ch. 12 - Prob. 1AP Ch. 12 - Prob. 2AP Ch. 12 - Prob. 3AP Ch. 12 - Prob. 4AP Ch. 12 - Prob. 5AP Ch. 12 - Prob. 6AP Ch. 12 - Prob. 7AP Ch. 12 - Prob. 8AP Ch. 12 - Prob. 1BP Ch. 12 - Prob. 2BP Ch. 12 - Prob. 3BP Ch. 12 - Prob. 4BP Ch. 12 - Prob. 5BP Ch. 12 - Prob. 6BP Ch. 12 - Prob. 7BP Ch. 12 - Prob. 8BP Ch. 12 - Prob. 12SP Ch. 12 - Prob. 1BTN Ch. 12 - Prob. 2BTN Ch. 12 - Prob. 3BTN Ch. 12 - Prob. 4BTN Ch. 12 - Prob. 5BTN Ch. 12 - Prob. 8BTN Ch. 12 - Prob. 10BTN

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