Question
Prepare statement of cash flows using the indirect method for Libby Inc. for the year 2013. Libby Inc. Income statement For the year ended on
Prepare statement of cash flows using the indirect method for Libby Inc. for the year 2013.
Libby Inc.
Income statement
For the year ended on December 31, 2013
Sales
$100,000
Cost of Goods Sold
$61,000
Depreciation
6,000
Supplies Expense
8,000
Wages Expense
10,000
Income Tax Expense
3,000
Total Expense
$88,000
Net income
12,000
Libby Inc.
Balance Sheet
December 31
2013
2012
Asset
Cash
$44,000
$18,000
Accounts Receivable
27,000
29,000
Merchandise Inventory
30,000
36,000
Property Plant and Equipment
111,000
102,000
Less Accumulated Depreciation
(36,000)
(30,000)
Total Assets
176,000
155,000
Accounts Payable
$25,000
$22,000
Wages Payable
800
1000
Notes Payable, Long Term
38,000
48,000
Common Stock
80,000
60,000
Retained Earnings
32,200
24,000
Total Liab. and Stockholder Eq.
176,000
155,000
Additional Information
1.Bought equipment for cash, $9,000.
2.Paid $10,000 on long term note payable.
3.Issue new shares of common stock for $20,000.
4.Declared and paid a $3,800 dividend in cash.
What is cash flows from:
Operatingactivities?
Investing activities?
Financing activities ?
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Intermediate Accounting
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
2nd edition
134730372, 134730370, 978-0134730370
