Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 . Prepare the Kachina Sports Company statement of cash flows for the year ended December 3 1 , 2 0 2 0 . Use

1. Prepare the Kachina Sports Company statement of cash flows for the year ended December 31,2020. Use the indirect method. Prepare the Kachina Sports Company statement of cash flows tor the year ended December 31,2020. Use the indirectmethod.
a. Enter amounts in the yellow cells.
b. Use a minus sign tor any cash outtlows.
a. Enter amounts in the yellow cells.
b. Use a minus sign for any cash outflows.
KACHINA SPORTS COMPANY
Adjusted Trial Balance
2020/12/31
Balance
Account Title Debit Credit
Cash $95,700
Accounts Receivable $12,000
Inventory $4,400
Office Equipment $26,000
Truck $18,000
Accumulated DepreciationPlant Assets $6,000
Accounts Payable $5,500
Note PayableShort Term $10,000
Note PayableLong Term $33,000
Common Stock $100,000
Retained Earnings
Dividends $1,000
Sales Revenue $15,000
Cost of Goods Sold $3,600
Rent Expense $2,000
Advertising Expense $800
Depreciation Expense $6,000
$169,500 $169,500
Transaction data for 2020
Cash paid for purchase of office equipment $6,000
Cash paid for purchase of truck $5,000
Acquisition of plant assets with a long-term notes payable $33,000
Cash payment of dividends $1,000
Cash receipt from issuance of common stock $100,000
KACHINA SPORTS COMPANY
Statement of Cash Flows
Year Ended December 31,2020
Cash Flows from Operating Activities:
Net Income $2,600 Correct
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Depreciation Expense - Plant Assets $6,000 Correct
Increase in Accounts Receivable Incorrect
Increase in Inventory Incorrect
Increase in Accounts Payable $5,500 Correct
Increase in Notes PayableShort-term $10,000 Correct
Net Cash Provided by Operating Activities $24,100 Incorrect
Cash Flows from Investing Activities:
Cash Paid for Acquisition of Plant Assets Incorrect
Net Cash Used for Investing Activities $0 Incorrect
Cash Flows from Financing Activities:
Cash Receipt from Issuance of Common Stock $100,000 Correct
Cash Payment of Dividends ($1,000) Correct
Net Cash Provided by Financing Activities $99,000 Correct
Net Increase (Decrease) in Cash: $123,100 Incorrect
Non-cash Investing and Financing Activities:
Acquisition of Plant Assets with Long-Term Notes Payable Incorrect
Total Non-cash Investing and Financing Activities $0 Incorrect
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting An Introduction

Authors: Atrill Peter, Eddie McLaney

6th Edition

0273771833, 978-0273771838

More Books

Students also viewed these Accounting questions

Question

=+interactive online components, out-of-home messages, print ads,

Answered: 1 week ago

Question

=+Why does the brand want to advertise?

Answered: 1 week ago

Question

=+12. Did your concept illustrate the brand's personality?

Answered: 1 week ago