Loose Leaf for Financial Accounting: Information for Decisions
Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 12, Problem 6PSB
Summary Introduction

Concept Introduction:

Cash Flow Statement: Cash flow statement tells company about the inflow and outflow of the cash into the business. From cash flow it is easier to find out the liquidity of the business. For a normal person cash flow is more important than the income statement.

To Prepare:

Full cash flow statement under indirect method.

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Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Required:Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts as positive values.)
Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.  GOLDEN CORPORATIONComparative Balance SheetsDecember 31   Current Year   Prior Year Assets                       Cash   $ 164,000         $ 107,000     Accounts receivable     83,000           71,000     Inventory     601,000           526,000     Total current assets     848,000           704,000     Equipment     335,000           299,000     Accum. depreciation—Equipment     (158,000 )         (104,000 )   Total assets   $ 1,025,000         $ 899,000     Liabilities and Equity…
Use the following information for the Problems below. Skip to question   [The following information applies to the questions displayed below.]Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.  FORTEN COMPANYComparative Balance SheetsDecember 31   Current Year   Prior Year Assets                       Cash   $ 58,900         $ 79,500     Accounts receivable     74,830           56,625     Inventory     284,656           257,800     Prepaid expenses     1,270           2,015     Total current assets     419,656           395,940     Equipment     151,500           114,000     Accum.…

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Loose Leaf for Financial Accounting: Information for Decisions

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