Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed

image text in transcribedXS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Previous Year Balance Sheet at December 31 Cash $ 35,230 $ 30,300 Accounts Receivable 36,400 28,700 Inventory 42,400 38,700 Equipment 131,500 107,000 Accumulated DepreciationEquipment (31,400 ) (25,700 ) Total Assets $ 214,130 $ 179,000 Accounts Payable $ 37,400 $ 27,700 Salaries and Wages Payable 1,030 1,300 Note Payable (long-term) 44,300 51,000 Common Stock 92,800 73,300 Retained Earnings 38,600 25,700 Total Liabilities and Stockholders Equity $ 214,130 $ 179,000 Income Statement Sales Revenue $ 127,000 Cost of Goods Sold 73,500 Other Expenses 40,600 Net Income $ 12,900 Additional Data: Bought equipment for cash, $24,500. Paid $6,700 on the long-term note payable. Issued new shares of stock for $19,500 cash. No dividends were declared or paid. Other expenses included depreciation, $5,700; salaries and wages, $20,700; taxes, $6,700; utilities, $7,500. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Decrease in Inventory Decrease in Salaries and Wages payable 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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

11th Edition

0471448966, 978-0471448969

More Books

Students also viewed these Accounting questions