Statement of cash flows—indirect method The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $250,000. b. Depreciation reported on the income statement, $135,000. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 30,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and paid, $45,000. Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020
BuyFind

Managerial Accounting

15th Edition
Carl Warren + 1 other
Publisher: South-Western College Pub
ISBN: 9781337912020

Solutions

Chapter
Section
Chapter 15, Problem 2PA
Textbook Problem

Statement of cash flows—indirect method

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

Chapter 15, Problem 2PA, Statement of cash flowsindirect method The comparative balance sheet of Yellow Dog Enterprises Inc.

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

  1. a. Net income, $250,000.
  2. b. Depreciation reported on the income statement, $135,000.
  3. c. Equipment was purchased at a cost of $420,000 and fully depreciated equipment costing $90,000 was discarded, with no salvage realized.
  4. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
  5. e. 30,000 shares of common stock were issued at $20 for cash.
  6. f. Cash dividends declared and paid, $45,000.

Instructions

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

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Chapter 15 Solutions

Managerial Accounting
Ch. 15 - Classifying cash flows Identify whether each of...Ch. 15 - Adjustments to net incomeindirect method Ripley...Ch. 15 - Changes in current operating assets and...Ch. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Land transactions on the statement of cash flows...Ch. 15 - Common stock transactions on the statement of cash...Ch. 15 - Free cash flow Dillin Inc. reported the following...Ch. 15 - Appendix 2 Cash received from customersdirect...Ch. 15 - Appendix 2 Cash payments for merchandisedirect...Ch. 15 - Cash flows from operating activitiesnet loss In a...Ch. 15 - Effect of transactions on cash flows State the...Ch. 15 - Classifying cash flows Identify the type of cash...Ch. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting land transactions on statement of cash...Ch. 15 - Determining cash payments to stockholders The...Ch. 15 - Reporting stockholders equity items on statement...Ch. 15 - Reporting land acquisition for cash and mortgage...Ch. 15 - Reporting issuance and retirement of long-term...Ch. 15 - Determining net income from net cash flow from...Ch. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Statement of cash flowsindirect method The...Ch. 15 - Statement of cash flowsindirect method List the...Ch. 15 - Cash flows from operating activitiesdirect method...Ch. 15 - Determining selected amounts for cash flows from...Ch. 15 - Cash flows from operating activitiesdirect method...Ch. 15 - Cash flows from operating activitiesdirect method...Ch. 15 - Statement of cash flowsindirect method The...Ch. 15 - Statement of cash flowsindirect method The...Ch. 15 - Statement of cash flowsindirect method The...Ch. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Statement of cash flowsindirect method The...Ch. 15 - Statement of cash flowsindirect method The...Ch. 15 - Statement of cash flowsindirect method The...Ch. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Analyze and compare Amazon.com, Best Buy, and...Ch. 15 - Analyze and compare Apple, Coca-Cola, and Verizon...Ch. 15 - Analyze Aeropostale Aeropostale, Inc. (AROPQ) is a...Ch. 15 - Analyze and compare ATT and Facebook ATT Inc. (T)...Ch. 15 - Analyze Priceline The Priceline Group Inc. (PCLN)...Ch. 15 - Ethics in Action Head Donuts Inc. is a retailer of...Ch. 15 - Financial condition Tidewater Inc., a retailer,...Ch. 15 - Using the statement of cash flows You are...

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