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two questions thank you. I need detail solution steps. If you can response in chinese, will appreciate.
Exercise: Indirect Method Cash Flow Statement Given balance sheet and additional information, prepare cash flow statement using indirect method: Year 2049 Assets Dec 31, 2019 Cash 70,720 Net AR 207,230 Inventories.. 298,520 Investments 0 Land. 295,800 Equipment. 438,600 Accumulated depn- equipment............. (99,110) Total assets. 1,211,760 Dec 31, 2048 47,940 188,190 289,850 102,000 0 358,020 (84,320) 901,680 Change 22,780 19,040 8,670 (102,000) 295,800 80,580 (14,790) 310,080 Statement of cash flows for Year Ended Dec 31, 2019 Cash flows from operating activities: Net income. Adjustments to reconcile net income to net cash flow from operating activities: Depreciation. Loss on sale of investments....... Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories. Increase in accounts payable. Increase in accrued expenses payable... Net cash flow from operating activities. Cash flows from (used for) investing activities: Cash from sale of investments..... Cash used for purchase of land. Cash used for purchase of equipment.. Net cash flow used for investing activities. Liabilities and Stockholders' Equity Accounts payable...... 205,700 194,140 11,560 Accrued expenses payable 30,600 26,860 3,740 Dividends payable. 25,500 20,400 5,100 Common stock, $1 par. 202,000 102,000 100,000 Paid-in capital.. 354,000 204,000 150,000 Retained earnings.. 393,960 354,280 39,680 Total liabilities and stockholders' equity.... 1,211,760 901,680 310,080 Additional information: a) Equipment and land were acquired for cash. b) There were no disposals of equipment during the year. C) The investments were sold for $91,800 cash. d The common stock was issued for cash. e There was a $141,680 credit to Retained Earnings for net income. There was a $102,000 debit to Retained Earnings for cash dividends declared. Cash flows from (used for) financing activities: Cash from sale of common stock. Cash used for dividends....... Net cash flow from financing activities.. Increase (decrease) in cash.. Cash at the beginning of the year. Cash at the end of the year.. 16 Year 2049 Exercise: Indirect Method (Solution) START Assets Cash. Net AR.. Inventories.. Investments.. Dec 31, 2019 70,720 207,230 298,520 0 295,800 438,600 (99, 110) 1,211,760 Dec 31, 2018 47,940 188,190 289,850 102,000 0 358,020 (84,320) 901,680 Change 22,780 19,040 8,670 (102,000) 295,800 80,580 (14,790) 310,080 Statement of cash flows for Year Ended Dec 31, 2019 Cash flows from operating activities: Net income. Adjustments to reconcile net income to net cash flow from operating activities: Depreciation. Loss on sale of investments. Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories....... Increase in accounts payable. Increase in accrued expenses payable. Land....... Equipment... Accumulated depn- equipment.... Total assets. Net cash flow from operating activities. Cash flows from (used for) investing activities: Cash from sale of investments.. Cash used for purchase of land. Cash used for purchase of equipment.. Net cash flow used for investing activities Liabilities and Stockholders' Equity Accounts payable......... 205,700 194,140 11,560 Accrued expenses payable. 30,600 26,860 3,740 Dividends payable 25,500 20,400 5,100 Common stock, $1 par. 202,000 102,000 100,000 Paid-in capital.. 354,000 204,000 150,000 Retained earnings. 393,960 354,280 39,680 Total liabilities and stockholders' equity.... 1,211,760 901,680 310,080 Additional information: ) Equipment and land were acquired for cash. b) There were no disposals of equipment during the year. ) The investments were sold for $91,800 cash. d) The common stock was issued for cash. e) There was a $141,680 credit to Retained Earnings for net income. f) There was a $102,000 debit to Retained Earnings for cash dividends declared. Cash flows from (used for) financing activities: Cash from sale of common stock. Cash used for dividends. Net cash flow from financing activities. Increase (decrease) in cash.. Cash at the beginning of the year. Cash at the end of the year...... END as can 17
