Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated. Depreciation-Equipment Total Assets Accounts Payable Salaries and wages Payable Current Year Previous Year $5.920 $ 3,740 810 4.510 (1.320) $ 9,920 590 3,500 1.570 4,100 (1.160) 2100 Notes Payable (long-tern) Common Stock 4.100 500 100 Retained teneings 1000 total abilities and Stockholders' Equity 59.920 Incone Statenent Service Revenue $41,300 Salaries and Wages Expense Depreciation Expense 10,pee 100 1,100 Income Tax Expose Net Income Additional Data: a Bought new hockey equipment for cash, $410, b. Borrowed $1,000 cash from the bank during the year 4 c Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax assume that this expense was fully paid in cash Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows < Prev 4 of 4 Next > Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities The two independent cases are listed below: Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Inventory Accounts Payable Salacles and ages Payable Required: Year Case A Year 1 Year 2 Case B Year 1 $ 10,300 $5,500 $ 20,00 5 14,500 5,370 2.700 21/370 8,570 4,930 2,800 8,930 5,930 2.200 1,200 1.250 1,150 1.800 1300 4,300 4,300 $1,930 $ 300 $3,460 5 486 $ 265 $B 5.680 $ 565 715 430 695 700 734 665 870 930 965 1,130 355 420 Show the operating activities section of the statement of cash flows for year 2 using the indirect method (Amounts to be deducted should be indicated with a minus sign.) Net Income Adjustments to Reconcila Nat Income to Net Cash Provided by Operating Activities Accounts Receivable Accounts Payable Changes in Assets and Liabilities Case A Cass B 5 05 d Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Current Year Previous Year $ 3,740 1,570 $ 5,920 810 4,510 (1,320) $ 9,920 $ 690 4,100 (1,160) $ 8,250 $1,100 750 590 1,500 500 4,100 4,100 3,040 1,800 $ 9,920 $ 8,250 $ 41,300 38,800 160 1,100 $ 1,240 Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Additional Data: a. Bought new hockey equipment for cash, $410. b. Borrowed $1,000 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities ed Additional Data: a. Bought new hockey equipment for cash, $410. b. Borrowed $1,000 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: 0 0 0 $ 0 The two independent cases are listed below: Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Inventory Accounts Payable Salaries and Wages Payable Required: Case A Year 2 Year 1 Year 2 Case B Year 1 $ 10,300 $ 5,500 $ 20,300 $ 14,500 5,370 2,700 11,370 8,570 4,938 2,800 8,930 5,930 1,200 1,200 1,150 1,150 1,800 1,300 4,300 4,300 $1,930 $ 300 $ 3,480 $ 480 $265 $ 330 $ 680 $ 565 715 430 695 730 730 665 870 930 965 1,130 355 420 Show the operating activities section of the statement of cash flows for year 2 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Assets and Liabilities $ 0 $ 0