Exercise 16-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement Gross profit Operating expenses Salaries expense Depreciation expense Rent expense Amortization expenses-Patents Utilities expense Gain on sale of equipment Net income $ 232,626 For Year Ended December 31 Sales $ 1,698,000 Cost of goods sold 832, 020 865,980 40,752 45,846 5,094 18,678 342,996 522,984 6,792 $520,776 Accounts receivable Inventory $ 45, 250 increase Accounts payable 36,950 increase Salaries payable $ 8,975 decrease 4,250 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be Indicated with a minus sign.) Statement at Cash O Inventory 36,950 increase Salaries payable 4,250 decrease Prepare the operating activities section of the statement of cash flows using the indirect method. (Amou indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 0 Required information Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below] Lansing Company's current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. LANSING COMPANY Income Statement For Current Year Ended December 31 Sales revenue Expenses Cost of goods sold Depreciation expense Salaries expense Rent expense Insurance expense Interest expense Utilities expense Net income $ 112,200 47,000 14,500 23,000 9,500 4,300 4,100 3,300 $ 6,500 LANSING COMPANY Selected Balance Sheet Accounts At December 31 Current Year Accounts receivable $6,100 Prior Year $6,800 Inventory 2,480 1,790 Accounts payable 4,900 5,600 Salaries payable 980 750 Utilities payable 329 210 Prepaid insurance 310 380 Prepaid rent 320 230 LANSING COMPANY Cash Flows from Operating Activities-Indirect Method For Current Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities 0 0 Use the following information for the Problems below. (Algo) [The following information applies to the questions displayed below] Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales. (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Current Year Prior Year $ 165,000 84,500 $ 100, 100 72,000 602,500 852,000 337,600 (158, 500) $ 1,031,100 527,000 707,100 300,000 (104/500) $ 902,600 $72,000 25,600 $ 89,000 29,000 118,000 97,600 593,200 569,000 197,800 161,500 122,100 74,500 $1,031,100 5:002,600 < Prev 3 of Next Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income: Additional Information on Current Year Transactions a. Purchased equipment for $37,600 cash. $ 1,797,000 1,087,000 710,000 495,000 54,000 161,000 23,400 $137,600 b. Issued 12,100 shares of common stock for $5 cash per share. c. Declared and paid $90,000 in cash dividends. 593,200 560,000 197,800 161,500 122,100 74,500 $ 1,031,100 $ 902,600 Problem 16-6A (Algo) Indirect: Statement of cash flows LO P2, P3 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) < Prev 3 of 3 Next > Problem 16-6A (Algo) Indirect: Statement of cash flows LO P2, P3 Required: Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities GOLDEN CORPORATION Statement of Cash Flows For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Changes in current assets and current liabilities $ Cash flows from investing activities es Required information Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0 0 0 $ 0 0