Question

XS Supply Company is developing its annual financial statements at December 31. The statements are complete...

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Previous Year Balance Sheet at December 31 Cash $ 34,960 $ 30,000 Accounts Receivable 35,800 28,400 Inventory 41,800 38,400 Equipment 127,000 104,000 Accumulated Depreciation—Equipment (30,800 ) (25,400 ) Total Assets $ 208,760 $ 175,400 Accounts Payable $ 36,800 $ 27,400 Salaries and Wages Payable 1,360 1,600 Note Payable (long-term) 41,600 48,000 Common Stock 91,000 73,000 Retained Earnings 38,000 25,400 Total Liabilities and Stockholders’ Equity $ 208,760 $ 175,400 Income Statement Sales Revenue $ 124,000 Cost of Goods Sold 72,000 Other Expenses 39,400 Net Income $ 12,600 Additional Data: Bought equipment for cash, $23,000. Paid $6,400 on the long-term note payable. Issued new shares of stock for $18,000 cash. No dividends were declared or paid. Other expenses included depreciation, $5,400; salaries and wages, $20,400; taxes, $6,400; utilities, $7,200. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Indirect method ,Statement of Cash flow

A. Cash flow from operating activites

Profit befor taxation(12600+6400) 19000

Adjustment for Depreceation   5400

24,400

Increase in Account Recievables (7400)

Increase in Inventory (3400)

Increase in Account Payable 9400

Decrease in Salary and wage payable (240)

22760

Tax Paid (6400)

Cash from operating activity 16,360

B. Cash flow from Investing Activity

Purchase of Equipment (23000)

Paid Long term Payable (6400)

Cash invested in Investing Activity    (29400)

C. Cash flow from Financing Activity

Issue of Common Stock 18000

Cash from financing Activity 18000

Cash at the beginning of period 30000

Increase in cash during period(A+B+C) 4960

cash at the end of period    34960

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
XS Supply Company is developing its annual financial statements at December 31, current year. The statements...
XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Current Year Prior Year Balance sheet at December 31 Cash $ 36,300 $ 31,400 Accounts receivable 38,900 31,500 Merchandise inventory 42,000 40,300 Property and equipment 125,200 102,500 Less: Accumulated depreciation (33,700 ) (27,000 ) $ 208,700 $ 178,700 Accounts payable $ 40,100 $ 31,200...
Audio City, Inc., is developing its annual financial statements at December 31. The statements are complete...
Audio City, Inc., is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Current Year Previous Year Balance Sheet at December 31 Cash $ 62,600 $ 67,200 Accounts Receivable 15,400 20,500 Inventory 22,600 20,500 Equipment 225,000 151,000 Accumulated Depreciation—Equipment (61,500 ) (46,000 ) Total Assets $ 264,100 $ 213,200 Accounts Payable $ 8,100 $ 19,200 Salaries and Wages Payable...
MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash $ 55,900...
MONTGOMERY INC. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash $ 55,900 $ 56,300 Accounts receivable, net 13,800 16,800 Inventory 123,700 97,100 Total current assets 193,400 170,200 Equipment 68,500 57,500 Accum. depreciation—Equipment (31,000 ) (21,200 ) Total assets $ 230,900 $ 206,500 Liabilities and Equity Accounts payable $ 33,000 $ 35,200 Salaries payable 600 800 Total current liabilities 33,600 36,000 Equity Common stock, no par value 165,900 153,100 Retained earnings 31,400 17,400 Total liabilities and equity...
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are...
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. Current Year Prior Year Balance Sheet Assets Cash $ 57,900 $ 79,800 Accounts receivable 88,000 77,000 Merchandise inventory 66,000 71,500 Property and equipment 122,000 66,000 Less: Accumulated depreciation (34,080 ) (17,000 ) Total assets $ 299,820 $ 277,300 Liabilities: Accounts payable $ 11,000 $ 13,200 Salaries...
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are...
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. Current Year Prior Year Balance Sheet Assets Cash $ 112,500 $ 130,500 Accounts receivable 140,000 122,500 Merchandise inventory 105,000 113,750 Property and equipment 200,000 105,000 Less: Accumulated depreciation (58,000 ) (30,000 ) Total assets $ 499,500 $ 441,750 Liabilities: Accounts payable $ 17,500 $ 21,000 Salaries...
The balance sheet for December 31, 2018, December 31, 2017, and the income statement for the...
The balance sheet for December 31, 2018, December 31, 2017, and the income statement for the year ended December 31, 2018, for Rocket Company follows. Rocket Company Balance Sheet December 31, 2018 and 2017 2018    2017 Assets Cash $ 25,000    $ 20,000 Accounts receivable, net 60,000    70,000 Inventory 80,000    100,000 Land 50,000    50,000 Building and equipment 130,000*   115,000 Accumulated depreciation (85,000)   (70,000) Total assets $260,000    $285,000 Liabilities and Stockholders' Equity Accounts payable $ 30,000    $ 35,000 Income taxes payable 4,000   ...
Financial statements for Discovery Company follow: DISCOVERY COMPANY Statement of Financial Position As of 31 December...
Financial statements for Discovery Company follow: DISCOVERY COMPANY Statement of Financial Position As of 31 December 20X4 20X3 Assets Current assets: Cash $ 28,000 $ 24,400 Accounts receivable 779,500 747,200 Inventory 635,900 580,800 Total current assets 1,443,400 1,352,400 Land 529,900 228,800 Plant and equipment 2,664,700 1,844,100 Less: Accumulated depreciation (1,357,700 ) (1,339,200 ) Patents 140,800 148,000 Total assets $ 3,421,100 $ 2,234,100 Liabilities and shareholders’ equity Liabilities: Current liabilities: Accounts payable $ 439,000 $ 482,400 Salaries and wages payable 69,200...
The income statement and selected balance sheet information for Calendars Incorporated for the year ended December...
The income statement and selected balance sheet information for Calendars Incorporated for the year ended December 31 is presented below. Income Statement   Sales Revenue $ 72,000   Expenses:        Cost of Goods Sold 33,000        Depreciation Expense 15,400        Salaries and Wages Expense 9,400        Rent Expense 1,900        Insurance Expense 1,000        Interest Expense 900        Utilities Expense 700      Net Income $ 9,700    Selected Balance Sheet Accounts Ending Balances Beginning Balances   Inventory $ 435 $ 500   Accounts Receivable 1,500 1,260   Accounts Payable 1,360 1,620   Salaries...
Asha Inc.’s financial statements for its year ended December 31, 20X8, follow: Asha Inc.   Statement of...
Asha Inc.’s financial statements for its year ended December 31, 20X8, follow: Asha Inc.   Statement of financial position   as at December 31, 20X8 20X8 20X7 Assets Cash and cash equivalent $94,000 $123,000 Accounts receivable (net) 114,000 111,500 FVOCI investments 15,000 12,000 Inventory 69,000 73,800 Prepaid expenses 15,000 11,700 Property, plant, and equipment (PPE), net 622,000 425,000 Trademark 48,000 63,000 $977,000 $820,000 Liabilities and shareholder equity Accounts payable $62,100 $57,500 Income taxes payable 21,100 19,000 Dividends payable 15,000 18,000 Bank loan...
The following are the financial statements of Sunland Company. SUNLAND COMPANY Balance Sheet December 31 Assets...
The following are the financial statements of Sunland Company. SUNLAND COMPANY Balance Sheet December 31 Assets 2021 2020 Cash $33,440 $17,600 Accounts receivable 26,400 12,320 Inventory 23,760 17,600 Equipment 52,800 68,640 Accumulated depreciation—equipment (25,520 ) (21,120 ) Total $110,880 $95,040 Liabilities and Shareholders’ Equity Accounts payable $21,120 $13,200 Income taxes payable 6,160 7,040 Notes payable 23,760 29,040 Common shares 15,840 12,320 Retained earnings 44,000 33,440 Total $110,880 $95,040 SUNLAND COMPANY Income Statement For the Year Ended December 31, 2021 Sales...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT