Natalie Daniels has completed the basic format to be used in preparing the statement of cash flows

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Natalie Daniels has completed the basic format to be used in preparing the statement of cash flows (indirect method) for CPU Hardware Designers. All amounts are in thousands (000s).
CPU HARDWARE DESIGNERS
Statement of Cash Flows
For the year ended December 31, 2012
Cash Flows from Operating Activities
Net income
Adjustments for noncash effects:
Net cash flows from operating activities...........................________
Cash Flows from Investing Activities
Net cash flows from investing activities..............................________
Cash Flows from Financing Activities
Net cash flows from financing activities.............................._______
Net increase (decrease) in cash $........................................................(50,000)
Cash at the beginning of the period ........................................80,000
Cash at the end of the period .............................................$ 30,000
Below, in random order, are line items to be included in the statement of cash flows.
Cash received from the sale of land ..............................$ 3,000
Issuance of common stock ........................................250,000
Depreciation expense ................................................20,000
Increase in accounts receivable ....................................60,000
Increase in accounts payable .......................................10,000
Loss on sale of land ..................................................7,000
Purchase of equipment .............................................220,000
Increase in inventory ................................................30,000
Increase in prepaid rent .............................................10,000
Payment of dividends ...............................................40,000
Net income ............................................................70,000
Repayment of notes payable .......................................50,000
Required:
Prepare the statement of cash flows for CPU Hardware Designers using the indirect method.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Financial Accounting

ISBN: 9780078110825

2nd Edition

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

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