Question
BG Wholesalers is developing its annual financial statements at December 31, 2013. The statements are complete except for the statement of cash flows. The completed
BG Wholesalers is developing its annual financial statements at December 31, 2013. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: |
2013 | 2012 | ||||||
Balance sheet at December 31 | |||||||
Cash | $ | 38,500 | $ | 30,900 | |||
Accounts receivable | 34,700 | 30,200 | |||||
Merchandise inventory | 45,000 | 39,100 | |||||
Property and equipment | 123,700 | 101,500 | |||||
Less: Accumulated depreciation | (32,400 | ) | (26,200 | ) | |||
$ | 209,500 | $ | 175,500 | ||||
Accounts payable | $ | 38,600 | $ | 29,800 | |||
Accrued expenses | 2,400 | 2,900 | |||||
Note payable, long-term | 46,000 | 49,300 | |||||
Contributed capital | 91,700 | 73,900 | |||||
Retained earnings | 30,800 | 19,600 | |||||
$ | 209,500 | $ | 175,500 | ||||
Income statement for 2013 | |||||||
Sales | $ | 130,000 | |||||
Cost of goods sold | 80,000 | ||||||
Other expenses | 38,800 | ||||||
Net income | $ | 11,200 | |||||
Additional Data: | |
a. | Bought equipment for cash, $22,200. |
b. | Paid $3,300 on the long-term note payable. |
c. | Issued new shares of stock for $17,800 cash. |
d. | No dividends were declared or paid. |
e. | Other expenses included depreciation, $6,200; wages, $20,200; taxes, $6,800; other, $6,400. |
f. | Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. |
Required: | |
1. | Prepare the statement of cash flows for the year ended December 31, 2013, using the indirect method.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) |
BG WHOLESALERS Statement of Cash Flows For the Year Ended December 31, 2013 | ||
Cash flows from operating activities: | ||
(Click to select)Net lossNet income | $ | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
(Click to select)Increase in accrued expensesDecrease in accrued expensesDepreciation expenseIncrease in accounts receivableIncrease in merchandise inventoryDecrease in accounts payableIncrease in accounts payable | $ | |
(Click to select)Increase in accrued expensesIncrease in merchandise inventoryDecrease in accrued expensesIncrease in accounts payableIncrease in accounts receivableDepreciation expenseDecrease in accounts payable | ||
(Click to select)Increase in accounts payableDepreciation expenseIncrease in accrued expensesDecrease in accrued expensesIncrease in merchandise inventoryIncrease in accounts receivableDecrease in accounts payable | ||
(Click to select)Depreciation expenseIncrease in accrued expensesIncrease in accounts payableDecrease in accounts payableIncrease in accounts receivableIncrease in merchandise inventoryDecrease in accrued expenses | ||
(Click to select)Increase in accrued expensesIncrease in merchandise inventoryDepreciation expenseDecrease in accrued expensesIncrease in accounts payableDecrease in accounts payableIncrease in accounts receivable | ||
Net cash(Click to select)provided byused inoperating activities | ||
Cash flows from investing activities: | ||
(Click to select)Net increase in cash during the yearIncrease in accounts receivableDepreciation expenseDecrease in accrued expensesNet decrease in cash during the yearIncrease in merchandise inventoryCash payments to purchase fixed assets | ||
Net cash(Click to select)provided byused byinvesting activities | ||
Cash flows from financing activities: | ||
(Click to select)Increase in accounts payableIncrease in merchandise inventoryIncrease in accounts receivableCash receipts from issuing stockCash payments on long-term noteCash payments for dividendsDecrease in accrued expenses | ||
(Click to select)Cash payments on long-term noteDecrease in accrued expensesIncrease in merchandise inventoryCash receipts from issuing stockIncrease in accounts receivableCash payments for dividendsIncrease in accounts payable | ||
Net cash(Click to select)provided byused infinancing activities | ||
(Click to select)Cash payments to purchase fixed assetsDecrease in accrued expensesNet increase in cash during the yearIncrease in merchandise inventoryNet decrease in cash during the yearDepreciation expenseIncrease in accounts receivable | ||
Cash balance, January 1, 2013 | ||
Cash balance, December 31, 2013 | $ | |
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