BELOW YOU WIL FIND THE QUESTIONS FOR STATEMENT OF CASH FLOWS AND JUST FILL IN THE BLANKS. BELOW IN RED YOU WIL FIND A HINT/ EXAMPLE .
THIS IS WHERE THE HINTS. IF YOU NEED MORE DETAIL PLEASE BE SURE TO ADJUST THE QUESTION SO I MAY BE ABLE TO EDIT AND ADD MORE INFO. THANKS
Statement of Cash Flows Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017 BRECKER INC. Comparative Balance Sheet As of December 31, 2017 and 2016 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Total assets 12/31/201 12/31/2016 3,000 S 3,500 31,000 25 500 20,000 30.000 2.500 2.000 77,000 65,000 (17,500) (12,500) $ 116,000 $ 113,500 $ Accounts payable Short-term bonds payable Long-term bonds payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities and stockholders' equity 23,000 $ 4,000 10,000 35,500 15,000 28,500 116,000 $ 20,000 5,000 20,000 35,500 15,000 18,000 113,500 $ BRECKER INC. Income Statement For the Year Ending December 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before tax Income tax expense Net income 168,075 87.500 80,575 60.000 20,575 5,700 14.875 4,375 10,500 Additional information: Dividends in the amount of $3,000 were declared and paid during 2017. Depreciation expense is included in operating expense. Equipment that had a historical cost of $10,000 and was 70% depreciated was sold for carrying book value during 2017. BRECKER INC. Statement of Cash Flows (Indirect Method) For the Year Ended 12/31/2017 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to cash basis: Net cash provided (used) by operating activities Cash Flows from Investing Activities: Net cash provided (used) by investing activities Cash Flows from Financing Activities: Net cash provided (used) by financing activities Net change in cash Cash, beginning Cash, ending + or income sta to- + or - ltor + Net income Adjustments Increase or Decrease in Accounts Receivabletor - Increase or Decrease in Inventory ter- Increase or Decrease in Accounts Payable to I Increase or decrease in Salaries Payable Depreciation Expense Cash provided by operating activities Cash flows from investing activities Purehase of equipment sale of equipment Cash provided by investing activities Cash flows from financing activities Issuance of bonds Issuance of stock Payment of cash dividends torn Cash provided by financing activities Net change in cash for 2020 Cash, beginning (12/31/2019) Cash, ending (12/31/2020) tor- HOY tor- tor + ct- tor- T from balam from bala Equipme Weuf 1950+4-470=2680 beg. 1950 equipment purchased &zo historical cost of equipment sold 'Find the value for X, which is equipment purchase end. 2660 for the year. Accumulated Depreciation 1150 beg. accumulated depreciation for the equipment sold y 4oo depreciation expense for the year from income statement to end. 150+400-y=480 'Find the value for y which is the accumulated depreciation for the equipment sold. *70 historical cost of the equipment 7 accumulated depreciation of the equipment I carrying book value of the equipment I It says the equipment is sold for this book value; then, this goes to 'Sale of Equipment on the statement of cash flows. 'sold carrying
