Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 13, Problem 13.2BPR
Statement of cash flows —indirect method
The comparative balance sheet of Harris Industries Inc. at December 31, 20Y4 and 20Y3, is as follows:
Dec. 31, 20Y4 | Dec. 31, 20Y3 | |
Assets | ||
Cash | $443,240 | $360,920 |
665,280 | 592,200 | |
Inventories | 887,880 | 1,022,560 |
Prepaid expenses | 31,640 | 25,200 |
Land | 302,400 | 302,400 |
Buildings | 1,713,600 | 1,134,000 |
Accumulated |
(466,200) | (414,540) |
Machinery and equipment | 781,200 | 781,200 |
Accumulated depreciation—machinery and equipment | (214,200) | (191,520) |
Patents | 106,960 | 112,000 |
Total assets | $4,251,800 | $3,724,420 |
Liabilities and |
||
Accounts payable (merchandise creditors|) | $837,480 | $927,080 |
Dividends payable | 32,760 | 25,200 |
Salaries payable | 78,960 | 87,080 |
Mortgage note payable, due in nine years | 224,000 | 0 |
Bonds payable | 0 | 390,000 |
Common stock, $5 par | 200,400 | 50,400 |
Paid-in capital. Excess of issue price over par—common stock | 366,000 | 126,000 |
2,512,200 | 2,118,660 | |
Total liabilities and stockholders' equity | $4,251,800 | $3,724,420 |
An examination of the income statement and the accounting records revealed the following additional information applicable to 20Y4:
- A. Net income, $524,580.
- B. Depreciation expense reported on the income statement: buildings, $51,660; machinery and equipment, $22,680.
- C. Patent amortization reported on the income statement, $5,040.
- D. A building was constructed for $579,600.
- E. A mortgage note for $224,000 was issued for cash.
- F. 30,000 shares of common stock were issued at $ 13 in exchange for the bonds payable.
- G. Cash dividends declared, $ 131,040.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
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Check out a sample textbook solutionChapter 13 Solutions
Financial & Managerial Accounting
Ch. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - If salaries payable was 100,000 at the beginning...Ch. 13 - Prob. 6DQCh. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Prob. 13.2BECh. 13 - Prob. 13.3BECh. 13 - Prob. 13.4BECh. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 13.7BECh. 13 - Prob. 13.8BECh. 13 - Prob. 13.1EXCh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 13.4EXCh. 13 - Prob. 13.5EXCh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 13.8EXCh. 13 - Reporting changes in equipment on statement of...Ch. 13 - Prob. 13.10EXCh. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 13.12EXCh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Prob. 13.14EXCh. 13 - Prob. 13.15EXCh. 13 - Prob. 13.16EXCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 13.19EXCh. 13 - Prob. 13.20EXCh. 13 - Cash flows from operating activities direct method...Ch. 13 - Prob. 13.22EXCh. 13 - Prob. 13.1APRCh. 13 - Prob. 13.2APRCh. 13 - Prob. 13.3APRCh. 13 - Prob. 13.4APRCh. 13 - Statement of cash flows direct method applied to...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flows indirect method The...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flows direct method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1ADMCh. 13 - Prob. 2ADMCh. 13 - Prob. 3ADMCh. 13 - Priceline: Free cash flow Priceline Group, Inc. is...Ch. 13 - Prob. 13.1TIFCh. 13 - Prob. 13.3TIF
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