Question
The following financial statements were provided by Roberts Company: Roberts Company Balance Sheets At September 30, 20X1 and 20X2 1 20X1 20X2 2 Assets: 3
The following financial statements were provided by Roberts Company:
Roberts Company |
Balance Sheets |
At September 30, 20X1 and 20X2 |
1 |
| 20X1 | 20X2 |
2 | Assets: |
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3 | Cash | $23,000.00 | $7,000.00 |
4 | Accounts receivable | 7,600.00 | 9,600.00 |
5 | Inventory | 20,800.00 | 18,000.00 |
6 | Plant and equipment | 40,000.00 | 60,000.00 |
7 | Accumulated depreciation | (10,000.00) | (16,000.00) |
8 | Total assets | $81,400.00 | $78,600.00 |
9 | Liabilities and equity: |
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10 | Accounts payable | $4,800.00 | $3,200.00 |
11 | Wages payable | 1,200.00 | 800.00 |
12 | Common stock | 50,000.00 | 50,000.00 |
13 | Retained earnings | 25,400.00 | 24,600.00 |
14 | Total liabilities and equity | $81,400.00 | $78,600.00 |
Roberts company |
Income Statement |
For the Year ended September 30, 20X2 |
1 | Sales |
| $40,000.00 |
2 | Cost of goods sold |
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3 | Beginning inventory | $20,800.00 |
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4 | Purchases | 26,000.00 |
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5 | Ending inventory | (18,000.00) | (28,800.00) |
6 | Wages expense |
| (4,000.00) |
7 | Advertising |
| (2,000.00) |
8 | Depreciation expense |
| (6,000.00) |
9 | Net income (loss) |
| $(800.00) |
At the end of 20X2, Roberts purchased some additional equipment for $20,000.
Required:
Prepare a statement of cash flows using the indirect method. |
Prepare a statement of cash flows using the indirect method. (Note: Begin by entering the applicable income statement amounts as presented above. Use a minus sign to indicate a negative amount. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)
Roberts Company |
Statement of Cash Flows |
For the Year ended September 30, 20X2 |
1 | Cash flows from operating activities: |
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3 | Add (deduct) adjusting items: |
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10 | Cash flows from investing activities: |
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