Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I can't tell if I'm doing this correctly and I'm having issues with some of them On December 31 of the current year, BGP Electrical

image text in transcribed

image text in transcribed

I can't tell if I'm doing this correctly and I'm having issues with some of them

On December 31 of the current year, BGP Electrical Supply is developing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 37,100 32,200 43,000 121,100 (30,300) $203, 100 $ 36,200 1,400 39,300 89, 100 37,100 $203, 100 $ 28,900 28,400 38, 100 100,400 (25, 100) $170,700 $ 27,400 1,500 44,100 72,700 25,000 $170,700 Accounts payable Accrued wages expense Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income $121,000 71,000 37,900 $ 12,100 Additional Data: a. Bought equipment for cash, $20,700. b. Paid $4,800 on the long-term note payable. c. Issued new shares of stock for $16,400 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,200; wages, $20,100; taxes, $6,100; other, $6,500. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.) BGP ELECTRICAL SUPPLY Statement of Cash Flows $ 12,100 For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $ Increase in accounts receivable Increase in merchandise inventory Increase in accounts payable 5,200 3,800 4,900 8,800 Decrease in accrued wages expense (100) 22,600 34,700 Net cash provided by operating activities Cash flows from investing activities: Cash payments to purchase property and equipment (20,700) (20,700) Net cash used in investing activities Cash flows from financing activities: Cash payments on long-term note Cash receipts from issuing stock (4,800) 16,400 11,600 25,600 Net cash provided by financing activities Net increase in cash during the year Cash balance, January 1, current year Cash balance, December 31, current year $ 25,600

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

Financial Accounting Introduction To Concepts Methods And Uses

Authors: Clyde P. Stickney, Roman L. Weil

11th Edition

0324222971, 978-0324222975

More Books

Students also viewed these Accounting questions