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I need help... APPLY THE CONCEPTS: Prepare the operating activities section The income statement and comparative balance sheets for Leonardo Inc. can be viewed by
I need help...
APPLY THE CONCEPTS: Prepare the operating activities section The income statement and comparative balance sheets for Leonardo Inc. can be viewed by clicking on the links below. No depreciable assets were purchased or sold during the period; therefore, the increase in Accumulated Depreciation is due to depreciation expense for the period. Complete the operating activities section of the statement of cash flows. Use a minus sign (-) to indicate an outflow of cash. No sign is needed to indicate an inflow of cash. APPLY THE CONCEPTS: Prepare the investing activities section Investing Activities Investing activities include inflows and outflows of cash related to noncurrent assets. Additional data related to noncurrent assets and liabilities may need to be collected to correctly calculate the cash flows from investing activities. Inflows of cash from investing activities may include a gain or loss in the sale of a noncurrent asset. Additional information for investing activities: One of Leonardo's suppliers experienced a devastating loss due to a tornado. Leonardo loaned the company $60,600 cash to help restore its operations. The loan is interest-free. Leonardo sold one of its parcels of land for $33,000. Use a minus sign (-) to indicate an outflow of cash. No sign is needed to indicate an inflow of cash. Financing activities include inflows and outflows of cash from transactions that either generate capital or repay capital provided to the company. As with investing activities, you must review the changes to equity accounts and noncurrent liabilities as well as collect any additional data related to equity accounts and noncurrent liabilities to correctly calculate the cash flows from financing activities. APPLY THE CONCEPTS: Prepare the financing activities section Additional financing activities data: On February 1, 2013, Leonardo Inc. issued 4,800 shares of its $1 par value stock. The company received the par value for the shares and $9,600 in excess of par value. Leonardo paid dividends of $3,600 to its stockholders on June 30, 2013. Use a minus sign (-) to indicate an outflow of cash. No sign is needed to indicate an inflow of cash. Cash flows from financing activities: After determining the cash flows from the operating, investing, and financing activities, the net change in cash can be calculated by totaling the cash flows from each of the activities. The net change in Cash is added to the Cash balance at the beginning of the period. The sum should be equal to the balance in Cash at the end of the year. APPLY THE CONCEPTS: Complete the statement of cash flows Use a minus sign (-) to indicate an outflow of cash. No sign is needed to indicate an inflow of cashStep by Step Solution
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