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XX Supply company is developing its annual financial statements at December 31. The statements are completed except for the statement of cash flows. The completed
XX Supply company is developing its annual financial statements at December 31. The statements are completed except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized:
Current Year Previous ea Balance Sheet at December 31 Cash Accounts Receivable Inventory Equipment Accumulated Depreciation -Equipment 34,960 30,000 28,400 38,400 127,000 104,000 35,800 41,800 (30,800)(25,400) $208,760 $175,400 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 36,800 27,400 1,600 48,000 73,000 38,00025,400 1,360 41,600 91,000 $208,760 $175,400 Income Statement Sales Revenue Cost of Goods Sold Other Expenses $124,000 72,000 39,400 Net Income $ 12,600 Additional Data a Bought equipment for cash, $23,000 b Paid $6 400 on the long-term note payable c. Issued new shares of stock for $18 000 cash d. No dividends were declared or paid e Other expenses included depreciation, $5.400 Salaries and wages, $20 400, taxes, $6,400; utilities $7.200 f 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.) Step by Step Solution
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