Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Common stock 100,000 Retained eamings 72,900 $235,900 68,500 59,800 $216,300 Total liabilities and equity Additional Information: 1. Net Income for 2019 was $21,200. 2. Cash

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Common stock 100,000 Retained eamings 72,900 $235,900 68,500 59,800 $216,300 Total liabilities and equity Additional Information: 1. Net Income for 2019 was $21,200. 2. Cash dividends of $8,100 were declared and paid during 2019. 3. Long-term investments with a cost of $28,600 were sold for cash at a gain of $4,100. Additional long-term investments were purchased for $14,400 cash 4. Equipment with a cost of $14,800 and accumulated depreciation of $13,500 was sold for $3,800 cash. New equipment was purchased for $27,350 cash, 5. Depreciation expense was $18,900 6. A principal payment of $25,500 was made on long-term notes 7. Common stock was sold for $31,500 cash. Required: Prepare a statement of cash flows for Erie, using the indirect method to compute net cash flow from operating activities. Use a minus sign to indicate any decreases in cash or cash outflows. If an answer is zero, enter "O". Erle Company Statement of Cash Flows For the year ended December 31, 2019 Cash flows from operating activities: Net Income 21,200 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 16.900 Gain on sale of investments Previous Next Erie Company Statement of Cash Flows For the year ended December 31, 2019 Cash flows from operating activities: Net income 21,200 18,900 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Gain on sale of investments Gain on sale of equipment Increase in accounts receivable Increase in inventory Decrease in prepaid rent Decrease in accounts payable Decrease in interest payable Increase in wages payable Increase in income taxes payable Net cash provided by operating activities Cash flows from investing activities: Net cash provided by operating activities Cash flows from investing activities: Net cash used for investing activities Cash flows from financing activities: m1 W10 Net cash used for financing activities Cash, 1/1/2019 Cash, 12/31/2019

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

Loose Leaf For Financial Accounting Fundamentals

Authors: John Wild, Ken Shaw, Barbara Chiappetta

6th Edition

1260151980, 978-1260151985

More Books

Students also viewed these Accounting questions