Question
On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare astatement of cash flows using
On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare astatement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period.
Stock was issued for cash-3,200 shares at par.
Net income for the current year was $76,000.
Cash dividends declared and paid were $13,000.
Current Year
Prior Year
Assets
Cash$ 170,000
$74,000
Accounts Receivable (net)78,000
85,000
Inventories106,500
90,000
Equipment395,000
370,000
Accumulated Depreciation(195,000)
(158,000)
Total assets$ 554,500
$461,000
Liabilities and stockholders' equity
Accounts Payable (merchandise creditors)$51,000
$50,000
Taxes Payable2,500
5,000
Common Stock, $10 par262,000
230,000
Retained Earnings239,000
176,000
Total Liabilities and Stockholders' Equity$ 554,500
$461,000
Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Breach Co.Statement of Cash FlowsFor Year Ended December 31
Cash flows from operating activities:_______
Adjustments to reconcile net income to net cash flow from operating activities:________
Changes in current operating assets and liabilities:________
Net cash flow from operating activities$________
- Cash flows from investing activities:Cash paid for purchase of equipment
Cash flows from investing activities______
Net cash flow used for investing activities_____
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