Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement and additional data of Newbury Travel Products, Inc., follow: (Click the icon to view the income statement.) A (Click the icon to
The income statement and additional data of Newbury Travel Products, Inc., follow: (Click the icon to view the income statement.) A (Click the icon to view the additional data.) Requirements 1. Prepare Newbury'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 Newbury'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 net decrease in cash.) Newbury 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 used for) operating activities: Net cash provided (used for) operating activities Choose from any list or enter any number in the input fields and then click Check Answer ? More Info Data Table Newbury Travel Products, Inc. Income Statement Additional data: a. Acquisition of plant assets was $145,000. Of this amount, $90,000 was paid in cash and $55,000 was financed by signing a note payable. b. Proceeds from the sale of land totaled $48,000. c. Proceeds from the issuance of common stock totaled $60,000. d. Payment of a long-term note payable was $19,000. e. Payment of dividends was $16,000. f. From the balance sheets: Year Ended December 31, 2018 Revenues: Service revenue $ 279,000 Dividend revenue 8,400 $ 287,400 December 31, Expenses: 2018 2017 Cost of goods sold 97,000 Current assets: 55,000 Cash $ $ 20,200 Salary expense Depreciation expense Advertising expense 35,000 150,000 36,000 Accounts receivable 55,000 4,100 29,000 91,000 Interest expense 2,300 11,000 Inventory Prepaid expenses 9,200 8,000 Income tax expense 204,400 $ 83,000 Net income Current liabilities: $ 30,000 $ 18,000 Accounts payable Accrued liabilities Print Done 36,000 99,000 Print Done
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