Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Statement of Cash Flows The following is a list of the items to be included in the preparation of Warrick Company's 2019 statement of cash flows: a. net income, $59,200 b. payment for purchase of building, $98,000 c. increase in accounts recelvable, $7,400 d. proceeds from issuance of common stock, $37,100 e. increase in accounts payable, $4,500 f. proceeds from sale of land, $7,000 9. depreciation expense, $12,600 h. payment of dividends, $36,000 1. gain on sale of land, $5,300 J. decrease in inventory, $3,700 k. payment for purchase of long-term investments, $9,600 I. amortization of discount on bonds payable, $1,900 m. proceeds from issuance of note, $18,000 n. increase in deferred taxes payable, $5,000 o. equipment acquired by capital lease, $19,500 p. decrease in salaries payable, $2,300 q. beginning cash balance, $20,300 1. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. WARRICK COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income Adjustment for noncash income items: Add: Depreciation expense . Add: Amortization of discount on bonds payable Add: Accumulated depreciation X Less: Gain on sale of land Adjustments for cash flow effects from working capital items: Increase in accounts payable X Decrease in inventory Decrease in accounts payable X Decrease in salaries payable Net cash provided by operating activities Investing Activities: Payment for purchase of building Proceeds from sale of land Net cash provided by operating activities Investing Activities: Rayment for purchase of bulding Proceceds from sale of land Rayment for purchase of long-term investments 58,000 7,000 9,600 Net cash used for investing activities Financing Activities: Brocects from issuance of common stock Pavment for purchase of equipment =X Proceeds from issuance of note x Net cash provided by financing activities Wet decrease in cosh w Gashi,1anuary 1.2019 Cash, December 31,2019 Investing and Financing Activities Not Affecting Cash Investing Activities: Acouistion of equipment under capital lease Financing Activities: Zncurrence of capical iease obligation for equipment i 19,500x 2. Assume the company's preferred stock has been selling for $120 per share during 2019 . How many shares would the company have had to issue to avold having a decrease in cash during the year? shares

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial & Managerial Accounting, The Managerial Chapters

Authors: Tracie Miller Nobles, Brenda Mattison

7th Edition

0136503616, 9780136503613

More Books

Students also viewed these Accounting questions