Question
On the basis of the following data for Garrett Co. for Years 1 and 2 ended December 31, prepare a statement of cash flows using
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On the basis of the following data for Garrett Co. for Years 1 and 2 ended December 31, prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared of $18,000.
Year 2
Year 1
Assets
Cash $ 90,000
$78,000
Accounts receivable (net) 78,000
85,000
Inventories 106,500
90,000
Equipment 410,000
370,000
Accumulated depreciation (150,000)
(158,000)
Total assets $534,500
$465,000
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $ 53,500
$55,000 Cash dividends payable 5,000
4,000
Common stock, $10 par 200,000
170,000
Paidin capital in excess of parcommon stock 62,000
60,000
Retained earnings 214,000
176,000
Total liabilities and stockholders' equity $534,500
$465,000
Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Garrett Co. Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: $fill in the blank 2 Adjustments to reconcile net income to net cash flow from operating activities: $fill in the blank 4 fill in the blank 6 Changes in current operating assets and liabilities: fill in the blank 8 fill in the blank 10 fill in the blank 12 Net cash flow from operating activities $fill in the blank 13 Cash flows from investing activities: $fill in the blank 15 fill in the blank 17 Net cash flow used for investing activities fill in the blank 18 Cash flows from financing activities: $fill in the blank 20 fill in the blank 22 Net cash flow provided by financing activities fill in the blank 23 $fill in the blank 25 Cash at the beginning of the year fill in the blank 26 Cash at the end of the year $fill in the blank 27
On the basis of the following data for Garrett Co. for Years 1 and 2 ended December 31, prepare a statement of cash flows using the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared of $18,000.
| Year 2 | Year 1 | |
| Assets | ||
| Cash | $ 90,000 | $78,000 |
| Accounts receivable (net) | 78,000 | 85,000 |
| Inventories | 106,500 | 90,000 |
| Equipment | 410,000 | 370,000 |
| Accumulated depreciation | (150,000) | (158,000) |
| Total assets | $534,500 | $465,000 |
| Liabilities and Stockholders' Equity | ||
| Accounts payable (merchandise creditors) | $ 53,500 | $55,000 |
| Cash dividends payable | 5,000 | 4,000 |
| Common stock, $10 par | 200,000 | 170,000 |
| Paidin capital in excess of parcommon stock | 62,000 | 60,000 |
| Retained earnings | 214,000 | 176,000 |
| Total liabilities and stockholders' equity | $534,500 | $465,000 |
Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
| Garrett Co. | ||
| Statement of Cash Flows | ||
| For the Year Ended December 31, Year 2 | ||
| Cash flows from operating activities: | ||
| $fill in the blank 2 | ||
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| $fill in the blank 4 | ||
| fill in the blank 6 | ||
| Changes in current operating assets and liabilities: | ||
| fill in the blank 8 | ||
| fill in the blank 10 | ||
| fill in the blank 12 | ||
| Net cash flow from operating activities | $fill in the blank 13 | |
| Cash flows from investing activities: | ||
| $fill in the blank 15 | ||
| fill in the blank 17 | ||
| Net cash flow used for investing activities | fill in the blank 18 | |
| Cash flows from financing activities: | ||
| $fill in the blank 20 | ||
| fill in the blank 22 | ||
| Net cash flow provided by financing activities | fill in the blank 23 | |
| $fill in the blank 25 | ||
| Cash at the beginning of the year | fill in the blank 26 | |
| Cash at the end of the year | $fill in the blank 27 | |
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Auditing A Risk Based Approach
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg
12th Edition
035772187X, 978-0357721872
