Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $54 million. Required: Prepare the statement
The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $54 million. Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $9 million are paid at January 1 of each year starting in 2021.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) SURMISE COMPANY Statement of Cash Flows For year ended December 31, 2021 (\$ in millions) Cash flows from operating activities: Net income Adjustments for noncash effects: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Net increase (decrease) in cash } & & \\ \hline Cash balance, January 1 & & \\ \hline Cash balance, December 31 & & \\ \hline Noncash investing and financing activities: & & \\ \hline & & \\ \hline \end{tabular}
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