See attached question
P12-5 (Supplement B) Preparing a Statement of Cash Flows with Gain on Sale of Equipment (Indirect Method) LO12-2, 12-4, 12-6 XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2014 Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation 2013 $34,000 35,000 41,000 121,000 (30,000) $201,000 $27,000 1,400 44,000 72,600 25,000 $201,000 Income statement for 2014 Sales Gain on sale of equipment Cost of goods sold Other expenses $170,000 $36,000 1,200 38,000 88,600 37,200 Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings $29,000 28,000 38,000 100,000 (25,000) $170,000 $120,000 1,000 70,000 38,800 Net income $12,200 Additional Data: a. Bought equipment for cash, $31,000. Sold equipment with original cost of $10,000, accumulated depreciation of $7,000, for $4,000 cash. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $12,000; wages, $13,000; taxes, $6,000; and other, $7,800. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1 Prepare the statement of cash flows for the year ended December 31, 2014, using the indirect method. (List cash outflows as negative amounts.) Possible input areas are shaded. XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities: - $- P12-5 (Supplement B) Preparing a Statement of Cash Flows with Gain on Sale of Equipment (Indirect Method) LO12-2, 12-4, 12-6 XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2014 Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation 2013 $34,000 35,000 41,000 121,000 (30,000) $201,000 $27,000 1,400 44,000 72,600 25,000 $201,000 Income statement for 2014 Sales Gain on sale of equipment Cost of goods sold Other expenses $170,000 $36,000 1,200 38,000 88,600 37,200 Accounts payable Wages payable Note payable, long-term Contributed capital Retained earnings $29,000 28,000 38,000 100,000 (25,000) $170,000 $120,000 1,000 70,000 38,800 Net income $12,200 Additional Data: a. Bought equipment for cash, $31,000. Sold equipment with original cost of $10,000, accumulated depreciation of $7,000, for $4,000 cash. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $12,000; wages, $13,000; taxes, $6,000; and other, $7,800. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1 Prepare the statement of cash flows for the year ended December 31, 2014, using the indirect method. (List cash outflows as negative amounts.) Possible input areas are shaded. XS SUPPLY COMPANY Statement of Cash Flows For the Year Ended December 31, 2014 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Net cash provided by operating activities - Cash flows from investing activities: Cash flows from financing activities: - $
