Question
Question 3. C Company's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below: Cash ($13,000) Accounts
Question 3. C Company's net income last year was $91,000. Changes in the company's balance sheet accounts for the year appear below:
Cash | ($13,000) |
Accounts receivable | 16,000 |
Inventory | 21,000 |
Prepaid expenses | (8,000) |
Long-term investments | 30,000 |
Property, plant and equipment | 60,000 |
Accumulated depreciation | 36,000 |
Accounts payable | (21,000) |
Accrued expenses | 14,000 |
Income taxes payable | 42,000 |
Bonds payable | (50,000 |
Common stock | 20,000 |
Retained earnings | 65,000 |
The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend. The beginning and ending cash balances were $20,000 and $7,000, respectively.
Required: Prepare a statement of cash flows using the indirect method.
Question 4. Net income for the current year was $92,150. Depreciation expense was $26,500. The balances of the current asset and current liability accounts at the beginning and end of the year are listed below
Particulars | End of Year | Beginning of Year | Increase (Decrease) | Add or Deduct |
a) Cash | 61,500 | 56,250 |
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b) Accounts receivable | 81,250 | 74,100 |
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c) Inventories | 103,000 | 81,000 |
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d) Prepaid expenses | 6,100 | 7,600 |
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e) Accounts payable | 49,400 | 51,200 |
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f) Salaries payable | 6,500 | 5,200 |
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Required: Prepare the cash flows from operating activities section of the statement of cash Net income for the current year was $92,150. Depreciation expense was
$26,500. The balances of the current asset and current liability accounts at the beginning and end of the year are listed below flows using the indirect method.
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