Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 11-4A Prepare a statement of cash flows-Indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional Information for Video Phones, Inc.

image text in transcribed
image text in transcribed
Problem 11-4A Prepare a statement of cash flows-Indirect method (LO11-2, 11-3, 11-4, 11-5) The income statement, balance sheets, and additional Information for Video Phones, Inc. are provided VIDEO POSES, INC. Income statement To the Ter Inded December 1, 2021 Net sales $2,936.000 Expono Coat of goods sold $1,050,000 Operating expenses 638,000 Depretation expense 25,000 Low on sale at land 7.000 Interest expense 14.000 Income tax expense 46.000 Total expense 2,780.000 et Income $ 155,200 VIDIO PHONES, INC. Balance sheets December 31 2021 2020 $293.410 70,800 105,000 20.320 $127.840 50,000 133.000 5,160 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term anses Investments Land quipment Accumulated depreciation Total asset Liate and stockholders Equity Current Stabilities Accounts payable Totest payable Income tax payable Long-tam liabilities Notes payable Stockholders' equity Common stock Metained saring Total liabilities and stockholders' equity 103,000 . 200.000 236,000 266,000 200,000 165.600) 10.600) 50%0.000 5726,400 3 64.200 5,000 14.800 201.000 $79.000 9.600 13,000 223,000 200,000 321.000 8726, 400 280.000 252 200 5098,000 Additional Information for 2021 1. Purchase investment in bonds for $103.000 2.Sell and costing $28,000 for only $20.200, resulting in a 57.800 loss on sale of land. 3. Purchase $58,000 in equipment by Issuing a $58,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $24,000 Required: Prepare the statement of cash flows using the Indirect method. Disclose any noncash transactions in an accompanying note (List cash outflows and any decrease in cash as negative amounts.) VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 Additional Information for 2021: 1. Purchase Investment in bonds for $103,000. 2 Sell land costing $28,000 for only $20,200, resulting in a $7.800 loss on sale of land. 3. Purchase $58,000 in equipment by Issuing a $58,000 long-term note payable to the seller. No cash is exchanged in the transaction. 4. Declare and pay a cash dividend of $24,000 Required: Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.) VIDEO PHONES, INC Statement of Cash Flows For the Year Ended December 31, 2021 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating active Net cash flows from operating activities Cash Flows from investing Activities Net cash flows from investing activities Cash Flows from Financing Activities: Net cash flows from financing activities Cash at the beginning of the period Cash of the end of the period Note: Noncash Activities

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: J. David Spiceland, Wayne Thomas, Don Herrmann

3rd edition

9780077506902, 78025540, 77506901, 978-0078025549

More Books

Students also viewed these Accounting questions