Question
Statement of Cash Flows (Indirect Method) Arctic Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow: ARCTIC COMPANY
Statement of Cash Flows (Indirect Method) Arctic Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow:
ARCTIC COMPANY Income Statement For the Year Ended December 31, 2013 | ||
---|---|---|
Sales Revenue | $873,600 | |
Cost of Goods Sold | $640,800 | |
Wages Expense | 228,000 | |
Advertising Expense | 37,200 | |
Depreciation Expense | 26,400 | |
Interest Expense | 21,600 | |
Gain on Sale of Land | (30,000) | 924,000 |
Net Loss | $(50,400) |
ARCTIC COMPANY Balance Sheets | ||
---|---|---|
Dec. 31, 2013 | Dec. 31, 2012 | |
Assets | ||
Cash | $48,720 | $33,600 |
Accounts Receivable | 60,480 | 60,000 |
Inventory | 128,400 | 135,600 |
Prepaid Advertising | 12,000 | 15,600 |
Plant Assets | 432,000 | 266,400 |
Accumulated Depreciation | (93,600) | (67,200) |
Total Assets | $588,000 | $444,000 |
Liabilities and Stockholders' Equity | ||
Accounts Payable | $20,400 | $37,200 |
Interest Payable | 7,200 | - |
Bonds Payable | 240,000 | - |
Common Stock | 294,000 | 294,000 |
Retained Earnings | 62,400 | 112,800 |
Treasury Stock | (36,000) | - |
Total Liabilities and Stockholders' Equity | $588,000 | $444,000 |
During 2013, Arctic sold land for $84,000 cash that had originally cost $54,000. Arctic also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash. Accounts payable relate to merchandise purchases. Required a. Calculate the change in cash that occurred during 2013. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during 2013 $Answer AnswerIncreaseDecrease
b. Use a negative sign with cash outflow answers.
ARTIC COMPANY Statement of Cash Flows For Year Ended December 31, 2013 | ||
---|---|---|
Cash Flow from Operating Activities | ||
Net Loss | $Answer | |
Add (deduct) items to convert net income to cash basis | ||
Depreciation | Answer | |
Gain on Sale of Land | Answer | |
Accounts Receivable | AnswerIncreaseDecrease | Answer |
Inventory | AnswerIncreaseDecrease | Answer |
Prepaid Advertising | AnswerIncreaseDecrease | Answer |
Accounts Payable | AnswerIncreaseDecrease | Answer |
Interest Payable | AnswerIncreaseDecrease | Answer |
Cash Flow Provided by Operating Activities | Answer | |
Cash Flow from Investing Activities | ||
Sale of Land | Answer | |
Purchase of Plant Assets | Answer | |
Cash Used by Investing Activities | Answer | |
Cash Flow from Financing Activities | ||
Issuance of Bonds Payable | Answer | |
Purchase of Treasury Stock | Answer | |
Cash Provided by Financing Activities | Answer | |
Net AnswerIncreaseDecrease in Cash | Answer | |
Cash at Beginning of Year | Answer | |
Cash at End of Year | $Answer |
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