Question
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 66,950 $ 66,200 19,750 25,950 25,950 214,150 (63,400) $263,400 20,800 152,800 (47,950) $217,800 $ 23,800 $ 13,500 5,400 64,000 6,000 76,200 104, 200 67,800 76,300 44,000 $263,400 $217,800 $213,000 110,000 15,450 44,800 $ 42,750 Additional Data: a. Bought equipment for cash, $61,350. b. Paid $12,200 on the long-term note payable. c. Issued new shares of stock for $36,400 cash. d. Dividends of $10,450 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the indirect method for the year ended December 31, current year. (List cash outflows as negative amounts.) SHARP SCREEN FILMS, INC.
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