Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lab #10 Ch 12 State of Cash Flows Instructions: 1. Calculate the year-over-year difference in column D, then whether the change was an increase or

Lab #10 Ch 12 State of Cash Flows

Instructions:

1. Calculate the year-over-year difference in column D, then whether the change was an "increase" or "decrease" (see Cash example).

2. Using the Indirect Method for Operating Activities, complete the Statement of Cash Flows at the bottom of the file.

Additional Data: Assume all transactions are for cash unless otherwise noted. Equipment in PPE is sold for $7500 cash. No purchases of PPE are made. Cost of equipment sold: 25,000 Accumulated depreciation on equipment sold 15,000 Dividends declared and paid in current year 3,700

image text in transcribedimage text in transcribed

Income statement Current Current Previous Pifference ncrease of Year Year Decrease? Sales Revenue Cost of goods sold Gross Margin Year 315,000 141,750 173,250 5,000 decrease 32,500 32,150 150 52,800 9,550 127,150 37,500 38,000 100 42,750 10.500 128,850 Operating expenses Salaries expense Rent expense Insurance expense Depreciation expense Total expenses Income from operations Other revenuelexpense Plus: Gain on sale of Equipment (PPE) Plus: interest revenue Less: Interest expense Total Net Income 123,000 24.000 5,750 8,500 161.250 12.000 20,000 0 125,000 150,000 (19,000)(25,500) 126,000 124,500 (2,500) 150 2,250 (4.600) 7,400 253,150 253,350 14 Balance Sheets as of Dec. 31st 15 16 Assets 17 Current Assets 18 Cash 19 Accounts Receivable 20 Interest Receivable 21 Merchandise Inventory 22 Prepaid Rent 23 Total current assets 24 25 Long-term Assets 26 Notes Receivable (nontrade) 27 Property, Plant & Equipment (PPE) 28 Less: Accumulated Depreciation 29 Total long-term assets 30 31 Total Assets 32 33 Liabilities and Shareholder's Equity 34 Current Liabilities 35 Accounts Payable - merchandise suppliers 36 Salaries Payable 37 Unearned Revenue 38 Interest payable 39 Total current liabilities 40 41 Long-term liabilities 42 Notes Payable (due in 5 years) 43 Bonds Payable (due in 10 years) 44 Total long-term liabilities 45 Total liabilities 46 Shareholder's equity 47 Common stock $10 par 48 Additional Paid in Capital 49 Retained Earnings 50 Total stockholder's equity 51 Total Liabilities plus stockholder's equity 52 5,700 3,400 11,000 350 20,450 14,200 7,500 10.000 500 32,200 15,000 5,000 20,000 40,450 12.450 15,000 27,450 59,650 70,000 60,000 115,000 109,700 27,700 24.000 212,700 193,700 253,150 253,350 53 54 Good Student Company 55 Statement of Cash Flow (Indirect Method) 56 December 31, 20XX 57 Operating Activities: 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Net Cash Flow from Operating Activities 72 73 Investing Activities: 74 75 76 77 Net Cash Flow from Investing Activities 78 79 Financing Activities: 80 81 82 83 84 85 Net Cash Flow from Financing Activities 86 87 Reconciliation: 88 Net Change in Cash 89 Add: Beginning Cash Balance 90 Ending Cash Balance 91 92

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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

More Books

Students also viewed these Accounting questions