Managerial Accounting: Tools For Business Decision Making, Seventh Edition Wileyplus Card
7th Edition
ISBN: 9781118680698
Author: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
Publisher: John Wiley & Sons Inc
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Chapter 13, Problem 13.10AP
To determine
Statement of
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.
To prepare: The statement of cash flows using the indirect method.
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E12-7 Preparlng and Evaluating a Slimple Statement of Cash Flows (Indirect Method) [LO 12-1, LO
12-2, LO 12-5]
Suppose the income statement for Goggle Company reports $131 of net income, after deducting depreciation of $26. The
company bought equipment costing $105 and obtained a long-term bank loan for $106. The company's comparative balance
sheet, at December 31, is presented here.
Requlred:
1. Calculate the change in each balance sheet account and indicate whether each account relates to operating, investing, and.
financing activities (+ for increase and - for decrease).
2. Prepare a statement of cash flows using the indirect method.
6. Are the cash flows typical of a start-up, healthy, or troubled company?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 6
Prepare a statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus
sign.)
GOGGLE COMPANY
Statement of Cash Flows
For the…
Use the following excerpts from Zowleski Company's financial information to
prepare a statement of cash flows (indirect method) for the year 2018.
Dec. 31,
Dec. 31,
2017
2018
Cash
Account Recelvable
Merchandise Inventory
Plant Assets
Accumulated Depreciation
Total Assets
$ 92,300
22,000
140,000
180,000
(25,000)
409,300
$ 85,000
22,900
131,000
150,000
(21,000)
367,900
Accounts Payable
Notes Payable
Common Stock
Retained Earnings
Total Liabilities and Equity
19,500
135,500
20,000
235,300
409,300
21,000
120,000
20,000
206,900
367,900
Additional information:
Net income for 2018
Depreciation expense for 2018 (accumulated depreciation increase)
Plant assets purchased (plant assets increase), financed by note
Notes payable increased by amount of plant asset purchase
Notes payable decreased by amount of principal note payments
28.400
4,000
30,000
30,000
14,500
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create a statement of cash flows with the given information:
Scruggs, Inc.
Balance Sheet
December 31,
2017
2016
Cash
$17,000
$12,000
Account receivable
60,000
40,000
Inventory
84,000
70,000
Prepaid expenses
6,000
4,000
Property, Plant & Equipment
250,000
210,000
Accumulated depreciation
(60,000)
(48,000)
$357,000
$288,000
Accounts payable
$35,000
$40,000
Interest payable
3,000
4,000
Income taxes payable
22,000
12,000
Bonds payable (due in 2020)
90,000
64,000
Common Stock $5 par
95,000
80,000
Retained Earnings
112,000
88,000
$357,000
$288,000…
Chapter 13 Solutions
Managerial Accounting: Tools For Business Decision Making, Seventh Edition Wileyplus Card
Ch. 13 - (a) What is a statement of cash flows? (b) Mark...Ch. 13 - Prob. 2QCh. 13 - Prob. 3QCh. 13 - Prob. 4QCh. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Contrast the advantages and disadvantages of the...Ch. 13 - Prob. 9QCh. 13 - Prob. 10Q
Ch. 13 - Prob. 11QCh. 13 - Prob. 12QCh. 13 - Prob. 13QCh. 13 - Prob. 14QCh. 13 - Prob. 15QCh. 13 - During 2017. Doubleday Company converted 1,700.000...Ch. 13 - Prob. 17QCh. 13 - Prob. 18QCh. 13 - Prob. 19QCh. 13 - Prob. 20QCh. 13 - Prob. 21QCh. 13 - Prob. 13.1BECh. 13 - Classify items by activities. (LO 1), C Classify...Ch. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Prob. 13.5BECh. 13 - Prob. 13.6BECh. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.9BECh. 13 - Prob. 13.10BECh. 13 - The management of Morrow Inc. is trying to decide...Ch. 13 - Prob. 13.12BECh. 13 - Prob. 13.13BECh. 13 - Prob. 13.14BECh. 13 - Prob. 13.1DICh. 13 - Prob. 13.2DICh. 13 - Prob. 13.3DICh. 13 - Tabares Corporation had these transactions during...Ch. 13 - An analysis of comparative balance sheets, the...Ch. 13 - Cushenberry Corporation had the following...Ch. 13 - Prob. 13.4ECh. 13 - The current sections of Scoggin Inc.s balance...Ch. 13 - Prob. 13.6ECh. 13 - Rojas Corporations comparative balance sheets are...Ch. 13 - Here are comparative balance sheets for Velo...Ch. 13 - Prob. 13.9ECh. 13 - Compute net cash provided by operating...Ch. 13 - Suppose a recent income statement for McDonalds...Ch. 13 - Compute cash flow from operating activitiesdirect...Ch. 13 - The following information is taken from the 2017...Ch. 13 - You are provided with the following transactions...Ch. 13 - The following account balances relate to the...Ch. 13 - The income statement of Whitlock Company is...Ch. 13 - Prob. 13.4APCh. 13 - Prob. 13.5APCh. 13 - Prob. 13.6APCh. 13 - Prob. 13.7APCh. 13 - Prob. 13.8APCh. 13 - Prob. 13.9APCh. 13 - Prob. 13.10APCh. 13 - Prob. 13.11APCh. 13 - Prob. 13.1BYPCh. 13 - Prob. 13.2BYPCh. 13 - Comparative Analysis Problem: Amazon.com, Inc. vs....Ch. 13 - Prob. 13.4BYPCh. 13 - Prob. 13.5BYPCh. 13 - Prob. 13.7BYPCh. 13 - Ethics Case Wesley Corp. is a medium-sized...Ch. 13 - Prob. 13.9BYP
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