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PARING AND ANALYZING THE STATEMENT oF CAsH FLows from operating activities section of statement of cash flows usin the 21A. Prepare cash method. (LO 40.
PARING AND ANALYZING THE STATEMENT oF CAsH FLows from operating activities section of statement of cash flows usin the 21A. Prepare cash method. (LO 40. Use the income statement for Hargrove Dynamics, Inc., for the past year ended December 31. 201 information from the comparative balance sheets shown beginning and the end of the from operating activities section of state. the the cash the ment of cash flows using the direct method. Hargrove Dynamics, Inc Income Statement For the Year Ended December 31, 2011 $120,000 Cost of goods sold Gross margin Operating expenses 7,500 Wages Rent 10,200 4,800 Utilities Insurance 56,000 Net income Selected accounts from the balance sheet: End of the Year Beginning of the Year Account Accounts receivable $15,000 5,000 32,000 12,500 Inventory Prepaid insurance 1,500 500 12,000 17,500 Accounts payable 1,600 Wages payable 1,850 Utilities payable 500 E9-22A. Prepare cash from operating activities section of statement of cash flows using prepare the cash from operat 5). Use uhe information cm E9-21A so indirect method. (LO statemere of cash hows ing the indirect method. Then, compar activities section of the fo: E9-21A What are the similarities? What are the dif with the statement you pre nces? Which statement do you find most inforinative 9-23A. Calculate change in cash. (LO l, 4, 6). Given the following information, calculate hange in cash for the year: Cash sales collected from customers $31,000 Cash received from sale of vehicle 5,000 Goodwill amortization expense for the year 3,200 Cash received from issuance of stock 75,000 Cash paid for salaries 19,800 Cash received from sale of land 21,200
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