can someone prepare a statement of cash flows using the indirect method with this information? thank you!
There are 3 main sections: operating, investing and financing. The operating is done using either a direct cash flow approach from analyzing current asset accounts (with the exception of cash, notes receivable) and current liabilities (with the exception of notes payable and dividends payable) OR the indirect approach starting with Net Income and then showing addbacks and deductions to arrive at operating cash flows. Using the information below, first set up ledger accounts, then prepare an income statement, and finally do a full-fledged statement of cash flows. Inventory: Beginning Balance 0. Ending Balance 1000; Cost of goods sold 500, First find purchases. Accounts Payable: BB 3000, EB 2000 Deferred Revenue: BB 8000, EB 9000 Service Revenue 3000 Wages Payable BB 4000, EB 3000, paid 1200 Income Tax Payable BB 0, EB 400, expense 800 Equipment BB 1000, EB 1500, cost of equipment sold 600 Accumulated Depreciation BB 500, EB 400, Accum Depr on equipment sold is 300 Accounts Receivable BB 2000, EB 0, NSF Check 200, Collections 1100, Sales 1000, Write-offs 100, Sales Discounts 500, Sales Returns/Allowances: Find Allowance for Uncollectibles BB 200, EB 400, Bad Debt Expense: Find Retained Earnings BB 1800, Dividends Declared 1100; First ind Net Income from the above data and then find EB. There are 3 main sections: operating, investing and financing. The operating is done using either a direct cash flow approach from analyzing current asset accounts (with the exception of cash, notes receivable) and current liabilities (with the exception of notes payable and dividends payable) OR the indirect approach starting with Net Income and then showing addbacks and deductions to arrive at operating cash flows. Using the information below, first set up ledger accounts, then prepare an income statement, and finally do a full-fledged statement of cash flows. Inventory: Beginning Balance 0. Ending Balance 1000; Cost of goods sold 500, First find purchases. Accounts Payable: BB 3000, EB 2000 Deferred Revenue: BB 8000, EB 9000 Service Revenue 3000 Wages Payable BB 4000, EB 3000, paid 1200 Income Tax Payable BB 0, EB 400, expense 800 Equipment BB 1000, EB 1500, cost of equipment sold 600 Accumulated Depreciation BB 500, EB 400, Accum Depr on equipment sold is 300 Accounts Receivable BB 2000, EB 0, NSF Check 200, Collections 1100, Sales 1000, Write-offs 100, Sales Discounts 500, Sales Returns/Allowances: Find Allowance for Uncollectibles BB 200, EB 400, Bad Debt Expense: Find Retained Earnings BB 1800, Dividends Declared 1100; First ind Net Income from the above data and then find EB
