Textbook Problem

Refer to the information provided in Brief Exercises 14-27, 14-28, and 14-29.

Required:

1. 1. Prepare a statement of cash flows for Roberts Company for 20X2.
2. 2. What is the relationship between the statement of cash flows and the change in cash calculated in Brief Exercise 14-26?

Roberts Company provided the following partial comparative balance sheets and the income statement for 20X2.

Required:

Compute operating cash flows using the indirect method.

During the year, Roberts Company sold equipment with a book value of $140,000 for $190,000 (original purchase cost of $240,000). New equipment was purchased.

Roberts provided the following comparative balance sheets:

Required:

Calculate the investing cash flows for the current year.

Roberts Company earned net income of $450,000 in 20X2. Roberts provided the following information:

Required:

Compute the financing cash flows for the current year.

Roberts Company provided the following information:

Required:

1. 1. Calculate the change in cash.
2. 2. Explain the role of the change in cash flow in the statement of cash flows.