The current assets and liabilities sections of the comparative balance sheet of Charron Inc., a private company
Question:
The current assets and liabilities sections of the comparative balance sheet of Charron Inc., a private company reporting under ASPE, at October 31 are presented below, along with the income statement:
Instructions
Prepare the operating activities section of the cash flow statement using the indirect method.
CHARRON INC. Comparative Balance Sheet Accounts 2021 2020 Cash $99,000 $105,000 Accounts receivable 64,000 41,000 Inventory Prepaid expenses Accounts payable Accrued expenses payable Dividends payable Income taxes payable 32,500 46,000 7,500 5,800 43,000 36,000 5,000 8,000 24,000 17,000 6,800 11,800 CHARRON INC. Income Statement Year Ended October 31, 2021 Sales $625,000 Cost of goods sold 390,000 Gross profit 235,000 Operating expenses Depreciation expense Loss on sale of equipment $88,000 23,000 8,000 119,000 Profit before income taxes 116,000 Income taxes 29,000 Profit $ 87,000
Step by Step Answer:
CHARRON INC Cash Flow Statement Partial Year Ended October 31 ...View the full answer
Accounting Principles Volume 2
ISBN: 978-1119502555
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Related Video
In order to determine the amount of cash created by operating operations, the indirect technique for preparing the statement of cash flows entails adjusting net income with changes in balance sheet.
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