Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare statement of cash flows using the indirect method the year 2017.Libby Inc.Income statementFor the year ended on December 31, 2017Sales$100,000Cost of Goods Sold$61,000Depreciation5,000Loss on

Prepare statement of cash flows using the indirect method the year 2017.Libby Inc.Income statementFor the year ended on December 31, 2017Sales$100,000Cost of Goods Sold$61,000Depreciation5,000Loss on sale of land1,000Supplies Expense8,000Salaries Expense10,000Income Tax Expense3,000Total Expense$88,000Net income12,000Libby Inc.Balance SheetDecember 3120172016AssetCash$44,000$18,000Accounts Receivable27,00029,000Inventory30,00036,000Land50,00065,000Equipment60,00037,000Buildings100,0000Less Accumulated Depreciation(35,000)(30,000)Total Assets276,000155,000Accounts Payable$25,000$22,000Salaries Payable8001,000Notes Payable, Long Term138,00048,000Common Stock80,00060,000Retained Earnings32,20024,000Total Liab. and SE.276,000155,000

Additional Information

1.Bought equipment for cash, $23,000.

2. Sold Land costing $15,000 only for $14,000 with loss on sale of land $1,000

3.Paid $10,000 on long term note payable.

4.Issue new shares of common stock for $20,000.

5.Declared and paid a $3,800 dividend in cash.

6. Purchased a building by signing a notes payable for $100,000

What is cash flows from:

Operatingactivities__________?

Investing activities___________?

Financing activities__________?

Non-cash activities_____________?

I need the operating, investing, financing, and non cash numbers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-15

Authors: James A Heintz, Robert W Parry

19th Edition

0324376162, 978-0324376166

More Books

Students also viewed these Accounting questions