Question
Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2. Swasey Company Partial Comparative Balance Sheets At December 31, 20X1
Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2.
Swasey Company |
Partial Comparative Balance Sheets |
At December 31, 20X1 and 20X2 |
1 |
| 20X1 | 20X2 |
2 | Current Assets |
|
|
3 | Accounts receivable | 755,000.00 | 677,000.00 |
4 | Inventories | 295,000.00 | 325,000.00 |
5 | Current liabilities |
|
|
6 | Wages payable | 695,000.00 | 680,000.00 |
Swasey Company |
Income Statement |
For the Year Ended December 31, 20X2 |
1 | Revenues | 3,100,000.00 |
2 | Gain on sale of equipment | 90,000.00 |
3 | Cost of goods sold | (1,920,000.00) |
4 | Depreciation expense | (270,000.00) |
5 | Interest expense | (15,000.00) |
6 | Net income | $985,000.00 |
Required: | |
Compute operating cash flows using the indirect method. |
Amount Descriptions
Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.
Amount Descriptions | |
Add cost of goods sold | |
Add interest expense | |
Decrease in accounts receivable | |
Decrease in inventories | |
Decrease in wages payable | |
Depreciation expense | |
Gain on sale of equipment | |
Increase in accounts receivable | |
Increase in inventories | |
Increase in wages payable | |
Less cost of goods sold | |
Loss on sale of equipment | |
Net cash from financing activities | |
Net cash from investing activities | |
Net cash from operating activities | |
Net income | |
Net loss |
Statement of Cash Flows - Indirect Method
Shaded cells have feedback.
Compute operating cash flows using the indirect method. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
Score: 33/70
Swasey Company |
Statement of Cash Flows |
Year Ending December 31, 20X2 |
1 |
| |
2 | Add (deduct) adjusting items: |
|
3 | ||
4 |
|
|
5 |
| |
6 |
| |
7 |
|
|
8 |
|
Points:
6.6 / 14
Feedback
Check My Work
The indirect method arrives at operating cash flows by making adjustments to net income for noncash items, nonoperating items, and accruals.
Review the "How to Prepare the Statement of Cash Flows" example in the text.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started