Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me with this question. The last picture is the option you can choose. Thank you! Prepare a statement of cash flows using the
Please help me with this question. The last picture is the option you can choose. Thank you! Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).) CARLA VISTA LTD of Cash Method Cash flows from operating activities Net income 10) Adjustments to reconcile net income to Net cash provided by operating activities expense 30000 Increase in (17 25500 Decrease in accounts payable (17000 Increase in accrued expenses payable 67000 88500 Net cash provided by operating activities 195500 Cash flows from investing activities Purchase of equipment (122000) Proceeds from sale of long-term investments (6000) Net cash used by investing activities (128000) The comparative unclassified statement of financial position for Carla Vista Ltd. follows: CARLA VISTA LTD. Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Long-term investments Equipment Accumulated depreciation Total assets 2018 $55,000 $29,000 85,000 68,000 178,000 203,500 74,000 135,000 280,000 158,000 (63,000) (33,000) 2017 $609,000 $560,500 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $609,000 $37,00054,000 174,000 197,500 199,000 177,000 199,000 132,000 $560,500 Additional information 1. Net income was $107,000 2. Sales were $970,000. 3. Cost of goods sold was $753,000 4. Operating expenses were $43,000, exclusive of depreciation expense 5. Depreciation expense was $30,000. 6. Interest expense was $17,000. 7. Income tax expense was $26,000 8. Long-term investments were sold at a gain of $6,000 9. No equipment was sold during the year 10. $23,500 of the bank loan was repaid during the year 11. Common shares were issued for $22,000 Decrease in accounts payable Decrease in inventory Net income Loss on sale of long-term investments Decrease in accounts receivable Increase in accrued expenses payable Gain on sale of long-term investments Proceeds from sale of long-term investments Purchase of land Increase in accounts receivable Purchase of equipment Issue of common shares Decrease in prepaid expenses Payment of cash dividends Increase in prepaid expenses Sale of equipment Repayment of bank loan Decrease in accrued expenses payable Increase in inventory Depreciation expense Increase in accounts payable
Please help me with this question. The last picture is the option you can choose. Thank you!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started