The 2021 and 2020 comparative balance sheets and 2021 income statement of Outdoor Supply Corp. follow: (Click the icon to view the income statement.) (Click the icon to view the comparative balance sheet.) Outdoor Supply had no noncash investing and financing transactions during 2021. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions. Read the requirements. Requirement 1. Prepare the company's 2021 statement of cash flows using the direct method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Outdoor Supply Corp. Statement of Cash Flows (Direct Method) Year Ended December 31, 2021 Cash flows from operating activities: Receipts: Payments: Total cash payments Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash. Data table Outdoor Supply Corp. Income Statement Year Ended December 31, 2021 Revenues: Sales revenue Expenses: Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses Net income Print CEXEC $ 187,500 76.500 17,200 49,800 24,000 29,300 Done - X $ 447,000 384,300 $ 62,700 Requirement 2. How will what you learned in this problem help you evaluate an investment? OA. Learn how companies prepare the statement of cash flows in order to understand the meaning of cash flows from the three basic categories of business activities. OB. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments. OC. Both A and B. OD. None of the above. Data table Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Plant assets: Land Equipment, net Total assets Current liabilities: Accounts payable Salary payable Other accrued liabilities Outdoor Supply Corp. Comparative Balance Sheets Long-term liabilities: Notes payable Stockholders' equity: Common stock, no-par Retained earnings Total liabilities and stockholders' equity Print $ December 31, $ 2021 18,000 $ 56,000 69,400 2,600 35,100 $ 17,000 23,600 63,600 20,000 60,100 49.900 $ 269,700 $ 188,200 $ 53,000 89,100 51.900 $ 269,700 $ 2020 Done Increase (Decrease) 4,000 $ 55,000 57,400 1,900 27,400 $ 24,600 24,300 22,000 66.400 23.500 188,200 $ - X 14,000 1,000 12,000 700 43,600 10,200 81,500 7,700 (7,600) (700) 31,000 22,700 28,400 81,500

The 2021 and 2020 comparative balance sheets and 2021 income statement of Outdoor Supply Corp. follow: (Click the icon to view the income statement.) (Click the icon to view the comparative balance sheet.) Outdoor Supply had no noncash investing and financing transactions during 2021. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions. Read the requirements. Requirement 1. Prepare the company's 2021 statement of cash flows using the direct method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Outdoor Supply Corp. Statement of Cash Flows (Direct Method) Year Ended December 31, 2021 Cash flows from operating activities: Receipts: Payments: Total cash payments Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash. Data table Outdoor Supply Corp. Income Statement Year Ended December 31, 2021 Revenues: Sales revenue Expenses: Cost of goods sold Salary expense Depreciation expense Other operating expense Interest expense Income tax expense Total expenses Net income Print CEXEC $ 187,500 76.500 17,200 49,800 24,000 29,300 Done - X $ 447,000 384,300 $ 62,700 Requirement 2. How will what you learned in this problem help you evaluate an investment? OA. Learn how companies prepare the statement of cash flows in order to understand the meaning of cash flows from the three basic categories of business activities. OB. Learn how operating activities, investing activities, and financing activities generate cash receipts and cash payments. OC. Both A and B. OD. None of the above. Data table Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses Plant assets: Land Equipment, net Total assets Current liabilities: Accounts payable Salary payable Other accrued liabilities Outdoor Supply Corp. Comparative Balance Sheets Long-term liabilities: Notes payable Stockholders' equity: Common stock, no-par Retained earnings Total liabilities and stockholders' equity Print $ December 31, $ 2021 18,000 $ 56,000 69,400 2,600 35,100 $ 17,000 23,600 63,600 20,000 60,100 49.900 $ 269,700 $ 188,200 $ 53,000 89,100 51.900 $ 269,700 $ 2020 Done Increase (Decrease) 4,000 $ 55,000 57,400 1,900 27,400 $ 24,600 24,300 22,000 66.400 23.500 188,200 $ - X 14,000 1,000 12,000 700 43,600 10,200 81,500 7,700 (7,600) (700) 31,000 22,700 28,400 81,500

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter1: Introduction To Accounting And Business

Section: Chapter Questions

Problem 27E: Lowes Companies Inc., a major competitor of The Home Depot in the home improvement business,...

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