Question
Operating Cash Flows (Direct Method) Cost of goods sold $87,000 Inventory, beg. year 19,000 Inventory, end of year 23,000 Account payable, beg. year 11,000 Accounts
Operating Cash Flows (Direct Method)
Cost of goods sold $87,000
Inventory, beg. year 19,000
Inventory, end of year 23,000
Account payable, beg. year 11,000
Accounts payable, end of year 8,000
How do i calculate cash paid for merchandise purchased??
Statement of Cash Flows (Indirect Method)
DAIR COMPANY
Income Statement
For Year Ended December 31,2017
Sales $ 700,000
Cost of goods sold $ 440,000
Wages and other operating expenses 95,000
Depreciation expense 22,000
Amortization expense 7,000
Interest expense 10,000
Income tax expense 36,000
Loss on bond retirement 5,000 615,000
Net income85,000
DAIR COMPANY
Balance Sheets
Dec. 31, 2017 Dec. 31, 2016
Assets
Cash$ 27,000 $ 18,000
Accounts receivable 53,000 48,000
Inventory 103,000 109,000
Prepaid expenses 12,000 10,000
Plant assets 360,000 336,000
Accumulated depreciation (-)87,000 (-)84,000
Intangible assets 43,000 50,000
Total assets . $ 511,000 $ 487,000
Liabilities and Stockholders' Equity
Accounts payable $ 32,000 $ 26,000
Interest payable 4,000 7,000
Income tax payable 6,000 8,000
Bonds payable 60,000 120,000
Common stock 252,000 228,000
Retained earnings 157,000 98,000
Total liabilities and equity $ 511,000 $ 487,000
During 2017, the company sold for $17,000 cash old equipment that had cost $36,000 and had $19,000 accumulated depreciation. Also in 2017, new equipment worth $60,000 was acquired in exchange for $60,000 of bonds payable, and bonds payable of $120,000 were retired for cash at a loss. A $26,000 cash dividend was declared and paid in 2017. Any stock issuances were for cash.
I was able to successfully compute the change in cash that occurred in 2017. I am struggling preparing a 2017 statement of cash flows using the indirect method.
Can you help me figure out what the retirement of Bonds Payable is??
I thought it was 60,000 but that is incorrect.
Can you help me figure out what the Issuance of Common Stock is??
I thought it was -224,000, but that is incorrect.
Supplemental Cash Flow Disclosures
How do I figure out cash paid for interest??
I got 3,000 which is incorrect.
How do I figure out cash paid for income taxes??
I got -2,000 which is incorrect.
Statement of Cash Flows (Direct Method)
Again, I was able to successfully compute the change in cash that occurred in 2017. I am struggling preparing a 2017 statement of cash flows, now using the direct method.
How do i figure out cash paid for merchandise purchased? I got 331,000 which is incorrect.
How do i figure out Cash paid for wages & other operating expenses??
How do i figure out Cash paid for interest??
How do i figure out Cash paid for income taxes??
How do i figure out Retirement of bonds payable??
How do i figure out Issuance of common stock??
How do i figure out Payment of dividends??
Supplemental Cash Flow Disclosures
How do i figure out Cash Paid for Interest??
How do i figure out Cash Paid for Income Taxes??
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