Question

Shallow Waters Company was started several years ago by two diving instructors. The company's comparative balance...

Shallow Waters Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement are presented below, along with additional information.

  

   2015 2014
Balance Sheet at December 31
  Cash $ 3,500    $ 3,900
  Accounts receivable 1,100    900
  Prepaid expenses 140    190
  Equipment 700    0
  
$ 5,440    $ 4,990
  
  Wages payable $ 750    $ 1,300
  Contributed capital 2,000    1,500
  Retained earnings 2,690    2,190
  
$ 5,440    $ 4,990
  
Income Statement for 2015
  Lessons revenue $ 36,250   
  Wages expense 32,000   
  Other expenses 3,750   
  
  Net income $ 500   
  

  

Additional Data:
a. Prepaid expenses relate to rent paid in advance.
b. Other expenses were paid in cash.
c. Purchased equipment for $700 cash at the end of 2015 to be used starting in 2016.
d. An owner contributed capital by paying $500 cash in exchange for the company’s stock.


Required:

Prepare the statement of cash flows for the year ended December 31, 2015, using the indirect method.(List cash outflows as negative amounts.)

Homework Answers

Answer #1

Prepare the statement of cash flows for the year ended December 31, 2015, using the indirect method.(List cash outflows as negative amounts.)

Cash flow from operating activities
Net income 500
Adjustment to reconcile net income to net cash flow from operating activities
Increase account receivable (1100-900) -200
Decrease prepaid expense (140-190) 50
Decrease wages payable (1300-750) -550
-700
Net cash used in operating activities -200
Cash flow from investing activities
Purchase equipment -700
Net cash used in investing activities -700
Cash flow from financing activities
Issue Common Stock 500
Net cash flow from financing activities 500
Net cash increase (decrease) -400
Beginning cash 3900
Ending Cash 3500
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
Dive In Company was started several years ago by two diving instructors. The company’s comparative balance...
Dive In Company was started several years ago by two diving instructors. The company’s comparative balance sheets and income statement are presented below. Current Year Previous Year   Balance Sheet at December 31      Cash $ 4,180 $ 5,015      Accounts Receivable 1,700 850      Prepaid Expenses 170 85    $ 6,050 $ 5,950         Salaries and Wages Payable $ 700 $ 1,800      Common Stock 1,900 1,350      Retained Earnings 3,450 2,800    $ 6,050 $ 5,950      Income Statement      Service Revenue $ 41,650      Salaries...
Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance...
Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance sheets and income statement follow, along with additional information. Current Year Previous Year Balance Sheet at December 31 Cash $ 6,300 $ 4,500 Accounts Receivable 1,000 1,950 Equipment 6,600 6,000 Accumulated Depreciation—Equipment (1,700 ) (1,350 ) $ 12,200 $ 11,100 Accounts Payable $ 500 $ 1,100 Salaries and Wages Payable 400 750 Note Payable (long-term) 1,500 500 Common Stock 6,000 6,000 Retained Earnings 3,800...
Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance...
Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance sheets and income statement follow, along with additional information. Current Year Previous Year Balance Sheet at December 31 Cash $ 6,180 $ 4,160 Accounts Receivable 890 1,730 Equipment 5,390 4,900 Accumulated Depreciation—Equipment (1,480 ) (1,240 ) $ 10,980 $ 9,550 Accounts Payable $ 710 $ 1,200 Salaries and Wages Payable 510 750 Note Payable (long-term) 1,600 500 Common Stock 4,900 4,900 Retained Earnings 3,260...
1. Terry company's 2017 income statement and comparative balance sheets at December 31 of 2016 and...
1. Terry company's 2017 income statement and comparative balance sheets at December 31 of 2016 and 2017are shown. Terry Company                                                                    Income Statement        For the year Ended December 31, 2017    Sales                                                 $ 390,000    Cost of Goods Sold                            235,000                                                                                _______      Gross Profit                                                        $ 155,000    Wages Expenses                              $ 63,000    Depreciation Expense                        14,000    Other Operating Expenses                  26,000    Income Tax Expense                           17,000    120,000                                                                                 ______    ________      Net Income                                                          $ 35,000                                                  ...
A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance...
A comparative balance sheet and income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2015 2015 2014 Assets Cash $ 94,800 $ 24,000 Accounts receivable, net 41,000 51,000 Inventory 85,800 95,800 Prepaid expenses 5,400 4,200 Total current assets 227,000 175,000 Furniture 109,000 119,000 Accum. depreciation—Furniture (17,000 ) (9,000 ) Total assets $ 319,000 $ 285,000 Liabilities and Equity Accounts payable $ 15,000 $ 21,000 Wages payable 9,000 5,000 Income taxes payable 1,400 2,600 Total current...
Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER...
Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue $ 13,000 Operating expenses: Cost of goods sold $ 4,600 Depreciation 360 Insurance 700 Administrative and other 3,000 Total operating expenses 8,660 Income before income taxes 4,340 Income tax expense 1,736 Net income $ 2,604 Balance Sheet Information ($ in thousands) Dec. 31,2018 Dec. 31, 2017 Assets: Cash $...
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. ROTHLISBERGER COMPANY...
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $ 57,900 $ 49,200 Accounts receivable 42,100 63,700 Inventory 150,600 147,000 Prepaid expenses 13,500 23,800 Land 105,000 136,800 Buildings 200,000 200,000 Accumulated depreciation—buildings ( 60,500 ) ( 33,200 ) Equipment 229,700 157,300 Accumulated depreciation—equipment ( 42,200 ) ( 36,700 ) Total $ 696,100 $ 707,900 Liabilities and Stockholders’ Equity Accounts payable $ 46,500 $ 39,500...
consolidated income statement and selected comparative consolidated balance sheet data for Palano Company and subsidiary follow:...
consolidated income statement and selected comparative consolidated balance sheet data for Palano Company and subsidiary follow: Palano Company and Subsidiary Consolidated Income Statement for the Year Ended December 31, 2015 Sales $699,800 Cost of sales 263,100 Gross profit 436,700 Operating expenses:    Depreciation expense $76,100    Selling expenses 122,200    Administrative expenses 83,500 281,800 Consolidated net income 154,900 Less noncontrolling interest in consolidated net income 38,725 Controlling interest in consolidated net income $116,175 December 31 2014 2015 Accounts receivable $229,451 $323,275 Inventory 196,258...
MONTGOMERY INC. Comparative Balance Sheets December 31, 2016 and 2015 2016 2015   Assets   Cash $ 30,400...
MONTGOMERY INC. Comparative Balance Sheets December 31, 2016 and 2015 2016 2015   Assets   Cash $ 30,400 $ 30,550   Accounts receivable, net 10,050 12,150   Inventory 90,100 70,150   Total current assets 130,550 112,850   Equipment 49,900 41,500   Accum. depreciation—Equipment (22,500 ) (15,300 )   Total assets $ 157,950 $ 139,050   Liabilities and Equity   Accounts payable $ 23,900 $ 25,400   Salaries payable 500 600   Total current liabilities 24,400 26,000   Equity   Common stock, no par value 110,000 100,000   Retained earnings 23,550 13,050   Total liabilities and equity...
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. ROTHLISBERGER COMPANY...
The comparative balance sheets for Rothlisberger Company as of December 31 are presented below. ROTHLISBERGER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $59,900 $46,500 Accounts receivable 43,400 62,100 Inventory 148,100 145,600 Prepaid expenses 15,000 24,600 Land 96,500 130,300 Buildings 198,700 198,700 Accumulated depreciation—buildings (56,200 ) (31,200 ) Equipment 230,300 156,600 Accumulated depreciation—equipment (44,300 ) (36,200 ) Total $691,400 $697,000 Liabilities and Stockholders’ Equity Accounts payable $46,200 $39,000 Bonds payable 260,000 291,200 Common stock, $1 par 189,500 158,300...