Wickersham Brothers Inc. is developing its annual financial statements at Decemb
ID: 2346622 • Letter: W
Question
Wickersham Brothers Inc. is developing its annual financial statements at December 31, 2011. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.
254,600
Tax expense ($4,000) and interest expense ($3,000) were paid in full at the end of both years and are included in other expenses.
Prepare the statement of cash flows for 2011 using the indirect method. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)
Wickersham Brothers Inc. is developing its annual financial statements at December 31, 2011. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.
Explanation / Answer
cash flows from operating activities
net income
24,500
adjustments
change in accounts receivable
-9700
change in inventories
5700
depeciation
15000
change in accounts payable
-1900
change in wages payable
900
net cash provided by operating activities
34,500
cash flows from investing activities
Additions to property, plant, and equip
-50,100
Net cash used in investing activities
-50,100
Cash flows from financing activities
Repaid principal on long-term debt
-10,400
proceeds from issurance of stock
19800
cash paid for dividends
-16,200
Net cash used in financing activities
-6,800
Decrease in cash and cash equivalents
-22,400
Cash and cash equivalents, January 1
72,700
Cash and cash equivalents, December 31
50,300
cash flows from operating activities
net income
24,500
adjustments
change in accounts receivable
-9700
change in inventories
5700
depeciation
15000
change in accounts payable
-1900
change in wages payable
900
net cash provided by operating activities
34,500
cash flows from investing activities
Additions to property, plant, and equip
-50,100
Net cash used in investing activities
-50,100
Cash flows from financing activities
Repaid principal on long-term debt
-10,400
proceeds from issurance of stock
19800
cash paid for dividends
-16,200
Net cash used in financing activities
-6,800
Decrease in cash and cash equivalents
-22,400
Cash and cash equivalents, January 1
72,700
Cash and cash equivalents, December 31
50,300
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