Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The income statement and additional data of Breen Travel Products, Inc., follow: Click the icon to view the income statement) Click the icon to view

image text in transcribed
image text in transcribed
image text in transcribed
The income statement and additional data of Breen Travel Products, Inc., follow: Click the icon to view the income statement) Click the icon to view the additional data.) Requirements 1. Prepare Breen's statement of cash flows for the year ended December 31, 2018, using the indirect method. 2. Evaluate the company's cash flows for the year. In your evaluation, mention all three categories of cash flows and give the rationale for your evaluation Requirement 1. Prepare Breen's statement of cash flows for the year ended December 31, 2018, using the Indirect method. Start by completing the cash flows from operating activities. Then complete each section of the statement of cash flows, including the noncash investing and financing activities. (Use parentheses or a minus sign for numbers to be subtracted and for a not decrease in cash.) Breen Travel Products, Inc. Statement of Cash Flows (Indirect Method) Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by (used for operating activities Net cash provided by used for) operating activities More Info Additional data: a. Acquisition of plant assets was $180,000. Of this amount, $140,000 was paid in cash and $40,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $34,000. c. Proceeds from the issuance of common stock totaled $35,000. d. Payment of a long-term note payable was $17,000. e. Payment of dividends was $11,000. f. From the balance sheets: December 31, 2018 2017 Current assets: Cash $ $ 130,800 Accounts receivable 165,000 43,000 50,000 60,000 69,000 Inventory Prepaid expenses 9,800 8,700 Current liabilities: $ 37,000 $ 21,000 Accounts payable Accrued liabilities 99,000 79,000 - Data Table Breen Travel Products, Inc. Income Statement Year Ended December 31, 2018 Revenues: Service revenue $ 245,000 8,400 $ 253,400 Dividend revenue Expenses: Cost of goods sold 98,000 Salary expense 78,000 36,000 Depreciation expense Advertising expense Interest expense 4,200 3,900 Income tax expense 7,000 227,100 $ Net income 26,300

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

Cost Accounting A Managerial Emphasis

Authors: Charles T Horngren

6th Edition

0131795082, 978-0131795082

More Books

Students also viewed these Accounting questions

Question

What is your theoretical orientation? (For Applied Programs Only)

Answered: 1 week ago