Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information applies to the questions displayed below. Hanks Company is developing its annual financial statements at December 31, current year. The stetements are

image text in transcribedimage text in transcribedimage text in transcribed

The following information applies to the questions displayed below. Hanks Company is developing its annual financial statements at December 31, current year. The stetements are complete except for the statement of cash flows. The completed comparative balance sheets and income stetement are summarized as follows: Current Year Prior Year Balance sheet at December 31 Cash $ 33,600 27400 39,800 72,100 S 19,000 30,200 36,600 73,000 Merchandise inventory Fixed assets (net) 900 158,800 Accounts payable Wages payable Note payable, long-term Common stock, no par Retained earnings 28,300 22,400 2,100 49,300 60700 24,300 158,800 2,300 43,000 75,500 23,800 $ 172,900S Income statement for current year $ 85,000 (48,000) Sales Cost of gaods sold Expenses Net income 2,000 Additional data: a. Bought fioed assets for cash, $6,000. b. Paid $6,300 on the long-term note payable. C. Sold unissued common stock for $14.800 cash. d. Declared and paid a $2,500 cash dividend. e. Incurred the following expenses: depreciation, $6,900: wages, $12,500; taxes, $2,500; and other, $13,100. value: 1.00 points Required 1. Prepare statement of cash flows T-accounts using the indirect method to report cash flows from operating activities. (Enter all amounts as positive values.) Panel A: Changes in Cash Account Cash Operating Investing Financing 2. Prepare the statement of cash flows. (List cash outflows as negative amounts.) HANKS COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Total adjustments Cash flows from investing activities: Cash flows from financing activities

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

Step: 3

blur-text-image

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

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

5th Edition

0273651560, 978-0273651567

More Books

Students also viewed these Accounting questions