Question

3.) Prepare a Statement of Cash Flows using the indirect method. The balance sheets for Kinder...

3.) Prepare a Statement of Cash Flows using the indirect method.

The balance sheets for Kinder Company showed the following information. Additional information concerning transactions and events during 2018 are presented below.

Kinder Company

Balance Sheet

                                                                                                                          December 31          

                                                                                                                   2018                    2017   

         Cash                                                                                               $ 35,900 $ 10,200

         Accounts receivable (net)                                                                      38,300                 20,300

         Inventory                                                                                              35,000                 42,000

         Long-term investments                                                                                  0                 15,000

         Property, plant & equipment                                                                236,500                150,000

         Accumulated depreciation                                                                    (37,700)               (25,000)

                                                                                                                 $308,000              $212,500

         Accounts payable                                                                             $ 17,000              $ 26,500

         Accrued liabilities                                                                                 21,000                 17,000

         Long-term notes payable                                                                      70,000                 50,000

         Common stock                                                                                   130,000                 90,000

         Retained earnings                                                                                 70,000                 29,000

                                                                                                                 $308,000              $212,500

Additional data:

1.   Net income for the year 2018, $71,000.

2.   Depreciation on plant assets for the year, $12,700.

3.   Sold the long-term investments for $28,000 (assume gain or loss is ordinary).

4.   Paid dividends of $30,000.

5.   Purchased machinery costing $21,500, paid cash.

6.   Purchased machinery and gave a $60,000 long-term note payable.

7.   Paid a $40,000 long-term note payable by issuing common stock.

Homework Answers

Answer #1
Statement of Cash Flow
Particulars Amount Total Amount
Income                  71,000.00
Gain on sale of investment = 28000 - 15000               (13,000.00)
Depreciation                  12,700.00
Increase in AR               (18,000.00)
Decrease in inventory                    7,000.00
Decrease in AP                  (9,500.00)
Increase in Accrued liabilities                    4,000.00
Cash flow from operating activities                  54,200.00
Cash flow from Investing activities
Sale of investment                  28,000.00
Purchase of Machinery               (26,500.00)
Cash flow from Investing activities                    1,500.00
Cash flow from Financing activities
Dividends Paid               (30,000.00)
Cash flow from Financing activities               (30,000.00)
net change in cash and cash equivalents                  25,700.00
Opening cash and cash equivalents                  10,200.00
Closing cash and cash equivalents                  35,900.00
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Comparative Balance Sheet for SOX Company showed the following information. Additional information concerning transactions and...
The Comparative Balance Sheet for SOX Company showed the following information. Additional information concerning transactions and events during 2018 are presented below. SOX Company Balance Sheet             October 31 Change 2018 2017 Cash and cash equivalents $35,900 $10,200 Accounts receivable 48,300 20,300 Inventory 33,000 40,500 Prepaid expenses 2,000 1,500 Long-term investments 0 15,000 Property, plant & equipment 236,500 150,000 Accumulated depreciation (37,700) (25,000) Net Property, plant &   equipment 198,800 125,000 Total Assets $318,000 $212,500 Accounts payable $10,000 $26,500 Accrued liabilities...
1- When preparing a statement of cash flows using the indirect method, each of the following...
1- When preparing a statement of cash flows using the indirect method, each of the following should be classified as an operating cash flow except: Multiple Choice An increase in accounts receivable. A decrease in accounts payable. Proceeds from the disposal of a long-term asset with no gain or loss. An increase in prepaid expenses. A decrease in accrued expenses payable. 2- Marshland Company is preparing the company's statement of cash flows for the fiscal year just ended. The following...
Problem 1: Instructions: Prepare a statement of cash flows using the indirect method. The Comparative Balance...
Problem 1: Instructions: Prepare a statement of cash flows using the indirect method. The Comparative Balance Sheet of XYZ Inc. for December 31, 2019 and 2018 is shown as follows:                                                                                                                           12/31/19                       12/31/18                                            Assets Cash                                                                                                            $625,760                     $585,920 Accounts Receivable                                                                                  227,840                       208,960 Inventories                                                                                        $641,760                    $617,120 Investments                                                                                              0                             240,000 Land                                                                                                      328,000                            0 Equipment                                                                                           705,120                       553,120 Accumulated Depreciation-equipment                                         (166,400)                    (148,000)          Total Assets                                                                              $2,362,080                 $2,057,120                            Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors)                                   $424,480                   $404,960 Accrued expenses payable (operating expenses)                             42,240                       52,640...
Statement of Cash Flows (Indirect Method) The Artic Company’s income statement and com- parative balance sheets...
Statement of Cash Flows (Indirect Method) The Artic Company’s income statement and com- parative balance sheets at December 31 of 2019 and 2018 are shown below: ARTIC COMPANY Income Statement For the Year Ended December 31, 2019 Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
Problem 11-4A Prepare a statement of cash flows - indirect method (LO11-2, 11-3) VIDEO PHONES, INC....
Problem 11-4A Prepare a statement of cash flows - indirect method (LO11-2, 11-3) VIDEO PHONES, INC. Income Statement For the Year Ended December 31, 2018   Net sales $ 3,336,000   Expenses:        Cost of goods sold $ 2,150,000          Operating expenses 898,000          Depreciation expense 31,000          Loss on sale of land 8,400          Interest expense 17,000        Income tax expense 52,000           Total expenses 3,156,400   Net income $ 179,600 VIDEO PHONES, INC. Balance Sheet December 31 2018 2017   Assets   Current assets:      Cash $ 273,440    $ 177,520...
CP12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO...
CP12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5] Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:   2015   2014   Balance Sheet at December 31      Cash $ 46,220 $ 17,000      Accounts Receivable 25,200 27,000      Inventory 28,200 34,000      Equipment 108,800 100,000      Accumulated Depreciation—Equipment (36,200 ) (29,000 ) $...
​Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the...
​Connecticut, Inc. uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance​ sheet: ​Connecticut, Inc. Comparative Balance Sheet December​ 31, 2019 and 2018 2019 2018 Increase​ / ​(Decrease) Cash $20,000 $25,000 $(5,000) Accounts Receivable 33,000 36,000 ​(3,000​) Merchandise Inventory 57,000 26,000 31,000 Plant and Equipment 130,000 94,000 36,000 Accumulated Depreciation−Plant and Equipment ​(45,000​) ​(41,000​) ​(4,000​) Total Assets $195,000 $140,000 $55,000 Additional information provided by the company includes the​ following: 1....
Prepare a Statement of Cash Flows for the year ended Dec. 31, 2019, using the indirect...
Prepare a Statement of Cash Flows for the year ended Dec. 31, 2019, using the indirect method. Cash balance at prior year-end              $41,000           Gain on sale of machinery                     $2,000 Increase in inventory                            $5,000             Cash received from sale of machinery   $8,500 Depreciation expense                           $4,000             Increase in accounts payable                $1,500 Cash received from issuing stock           $8,000             Net income                                          $23,000 Cash paid for dividends                              $1,000                 Decrease in accounts receivable            $3,000 We bought a car for $40,000, nothing down, and signed a 4 year note for $40,000 to pay for it. Be sure to include totals for cash from...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Amelia Enterprises, Inc. at December 31,...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2016 and 2015, is as follows: Dec. 31, 2016                                     Dec. 31, 2015 Assets Cash $86,160                                                $105,150 Accounts receivable (net)                                                             132,390                                                141,750 Merchandise inventory                                                                 189,130                                                 175,690 Prepaid expenses                                                                            7,710                                                     5,320 Equipment 385,280                                                 314,770 Accumulated depreciation-equipment (100,170)                                            (77,200) Total $700,500                                             $665,480 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors)                                            $147,110                                              $139,090 Mortgage note payable 0                                            199,640 Common stock,...
CP12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO...
CP12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5] Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:   2015   2014   Balance Sheet at December 31      Cash $ 55,900 $ 23,000      Accounts Receivable 36,000 39,000      Inventory 39,000 46,000      Equipment 122,000 112,000      Accumulated Depreciation—Equipment (42,000 ) (35,000 ) $...