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Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.: a. Net income, $41,000 b. Payment of dividends, $16,000 c. Ten year , $28,000 bonds payable were issued at face value d. Depreciation expense, $11,000 e. Building acquired at a con of $40,000 f. Accounts receivable decreased by $2,000 g. Accounts payable decreased by $4,000 h. Equipment acquired at a cost of $8,000 i. Inventories increased by $7,000 j. Beginning cash balance, $13,000 Required: Prepare Rocky Horror Picture’s statement of cash flows using the indirect method.

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Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Chapter 5, Problem 11E
Textbook Problem

Statement of Cash Flows The following items involve the cash flow activities of Rocky Horror Picture Co.:

  1. a. Net income, $41,000
  2. b. Payment of dividends, $16,000
  3. c. Ten year, $28,000 bonds payable were issued at face value
  4. d. Depreciation expense, $11,000
  5. e. Building acquired at a con of $40,000
  6. f. Accounts receivable decreased by $2,000
  7. g. Accounts payable decreased by $4,000
  8. h. Equipment acquired at a cost of $8,000
  9. i. Inventories increased by $7,000
  10. j. Beginning cash balance, $13,000

Required:

Prepare Rocky Horror Picture’s statement of cash flows using the indirect method.

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Chapter 5 Solutions

Intermediate Accounting: Reporting And Analysis
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