Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help prepare the cash flow statements Bob Corporation had the following financial position (balance sheet) as of December 31, 2020: $10 2 11 Bob Corporation

help prepare the cash flow statements
image text in transcribed
image text in transcribed
Bob Corporation had the following financial position (balance sheet) as of December 31, 2020: $10 2 11 Bob Corporation Balance Sheet As of December 31, 2021 and 2020 ($ in millions) ASSETS: 2021 2020 LIABILITIES: 20212020 Cash Accounts $3 payable Accounts 7 Accrued receivable liabilities Prepaid rent Total 2 current liabilities Total Notes payable current assets 19 (5%, due 2025) Interest payable Office equipment 20 Total liabilities Less: EQUITY: Accumulated (5) depreciation Total $34 Common assets stock Retained 19 earnings Total 23 equity Total liabilities & $34 equity During 2021, Bob had the following transactions and other activities (all amounts are in Smillions): a. Sold consulting services on account worth $30. b. Collected S20 cash from clients on account. c. Paid S10 for rent on the office space for the months of March 2021 through December 2021. Prepaid rent from last year's payment expired at the end of February 2021.) d. Recorded S1 of depreciation on office equipment, e. Paid vendors for previously unpaid balances (the balance of accounts payable) 1. Paid the utilities bills and other accrued liabilities outstanding at December 31, 2020). g Accrued interest on the note payable. $ 4 Prepare a cash flow statement for 2021 using the direct method for operating activities. Prepare a cash flow statement for 2021 using the indirect method for operating activities. (While not required, you may want to create the 2021 balance sheet to readily see the changes in balance sheet accounts from 2020)

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

The Development Of The American Public Accounting Profession

Authors: T.A. Lee

1st Edition

0415403944, 9780415403948

More Books

Students also viewed these Accounting questions

Question

Briefly explain the qualities of an able supervisor

Answered: 1 week ago

Question

Define policy making?

Answered: 1 week ago

Question

Define co-ordination?

Answered: 1 week ago

Question

What are the role of supervisors ?

Answered: 1 week ago

Question

What would you do?

Answered: 1 week ago