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Please prepare a Statement of cash flows using the indirect method with the information below. PROBLEM DATA The trial balance of Sports Connection at June

Please prepare a Statement of cash flows using the indirect method with the information below.

PROBLEM DATA The trial balance of Sports Connection at June 30, 2013, the end of the current fiscal year, is as follows:

Sports Connection Trial Balance June 30, 2013

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Adjustment information is as follows:

a. Supplies on hand as of June 30, 2013, $450.

b. Insurance premiums that expired during the year, $2,420.

c. Depreciation on equipment during the year, $1,500.

d. Included in the rent expense of $30,000 is $1,200 that is prepaid for July 2013.

e. Salaries accrued but not paid at June 30, 2013, $1,440.

f. Merchandise inventory on June 30, 2013, $68,864.

image text in transcribed

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$ 17,150 27,780 47,964 4,410 2,370 30,000 Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Accounts Payable M. Moser, Capital M. Moser, Drawing Sales Purchases Advertising Expense Rent Expense Salaries Expense Utilities Expense $3,000 12,420 105,572 14,400 299,400 192,900 7,950 30,000 39,840 5,628 $ 420,392 $ 420,392 Statement of Cash Flows Prime Sports Gear, Inc. Work Sheet for Statement of Cash Flows For Year Ended December 31, 2013 Analysis of Transactions for Year Ended 12/31/2013 Account Balance 12/31/12 Account Balance 12/31/13 Debit Credit 39,600 112,215 210,930 10,875 315,000 688,620 0 0 0 Debits Cash Accounts receivable Merchandise inventory Prepaid expenses Plant assets Total Credits Accumulated depreciation Accounts payable Salaries payable Bonds payable Common stock, $20 par Additional paid-in capital Retained earnings Total 90,000 59,220 30,000 105,000 210,000 22,500 171,900 688,620 0 0 0 0 0 0 Operating Activities Summary 0 Investing Activities 0 Financing Activities 0 Noncash Investing & Financing 0 0 Change in cash 0 0 0 $ 17,150 27,780 47,964 4,410 2,370 30,000 Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Store Supplies Store Equipment Accumulated Depreciation Accounts Payable M. Moser, Capital M. Moser, Drawing Sales Purchases Advertising Expense Rent Expense Salaries Expense Utilities Expense $3,000 12,420 105,572 14,400 299,400 192,900 7,950 30,000 39,840 5,628 $ 420,392 $ 420,392 Statement of Cash Flows Prime Sports Gear, Inc. Work Sheet for Statement of Cash Flows For Year Ended December 31, 2013 Analysis of Transactions for Year Ended 12/31/2013 Account Balance 12/31/12 Account Balance 12/31/13 Debit Credit 39,600 112,215 210,930 10,875 315,000 688,620 0 0 0 Debits Cash Accounts receivable Merchandise inventory Prepaid expenses Plant assets Total Credits Accumulated depreciation Accounts payable Salaries payable Bonds payable Common stock, $20 par Additional paid-in capital Retained earnings Total 90,000 59,220 30,000 105,000 210,000 22,500 171,900 688,620 0 0 0 0 0 0 Operating Activities Summary 0 Investing Activities 0 Financing Activities 0 Noncash Investing & Financing 0 0 Change in cash 0 0 0

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