Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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: Current Year Prior Year Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 73,250 15,250 23,450 209, 250 (57,450) $263,750 $ 63,500 21,350 18,000 160, 350 (45,750) $217,450 $ 19,000 2,700 71,000 65,900 58,850 $217,450 $ 16,500 Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings 2,000 56,300 103,950 85,000 $263,750 Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income $ 205,000 123,500 11,700 43,000 $ 26,800 Additional Data: a. Bought equipment for cash, $48,900. b. Paid $14,700 on the long-term note payable. c. Issued new shares of stock for $38,050 cash. d. Dividends of $650 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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started