Question
I don't know if I did it right so far, please correct/fill in answers. Thanks Smithson's statement of cash flows using the indirect method to
I don't know if I did it right so far, please correct/fill in answers. Thanks Smithson's statement of cash flows using the indirect method to report operating activities. Include a schedule of noncash investing and financing activities. |
Start by completing the cash flows from operating activities. Then complete the remaining sections of the statement of cash flows including the schedule of noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.)
Smithson Software Corp. | |||
Statement of Cash Flows (Indirect Method) | |||
Year Ended December 31, 2021 | |||
Cash flows from operating activities: | |||
Net income | 6,500 | ||
Adjustments to reconcile net income to | |||
net cash provided by (used for) operating activities: | |||
Depreciation expense | 23,000 | ||
Loss on sale of equipment | (4,200) | ||
Amortization expense | 5,000 | ||
Decrease in accounts receivable | |||
Decrease in inventories | |||
Increase in prepaid expenses | |||
Decrease in accounts payable | |||
Increase in income tax payable | |||
Decrease in accrued liabilities | |||
Net cash provided by (used for) operating activities |
Required info:
Transaction Data for 2021: | |||||||
Acquisition of land by issuing | Purchase of treasury stock | $14,600 | |||||
long-term note payable | $201,000 | Loss on sale of equipment | 4,200 | ||||
Stock dividends | 31,600 | Payment of cash dividends | 44,000 | ||||
Collection of loan | 10,000 | Issuance of long-term note | |||||
Depreciation expense | 23,000 | payable to borrow cash | 52,200 | ||||
Purchase of building | Net income | 6,500 | |||||
with cash | 159,000 | Issuance of common stock | |||||
Retirement of bonds payable | for cash | 83,100 | |||||
by issuing common stock | 61,000 | Proceeds from sale of | |||||
Purchase of long-term | equipment | 12,200 | |||||
investment with cash | 45,000 | Amortization expense | 5,000 |
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December 31, | ||||
2021 | 2020 | |||
Current Accounts: | ||||
Current assets: | ||||
Cash and cash equivalents | $34,400 | $24,000 | ||
Accounts receivable | 19,000 | 64,000 | ||
Inventories | 8,000 | 87,000 | ||
Prepaid expenses | 3,100 | 1,900 | ||
Current liabilities: | ||||
Accounts payable | $10,400 | $56,100 | ||
Income tax payable | 29,100 | 16,800 | ||
Accrued liabilities | 14,900 | 27,500 |
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