(Chapters 14, 15, 16&17) Saved December 31, 2018 and 2017 2018 Assets Cash Accou
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Question
(Chapters 14, 15, 16&17) Saved December 31, 2018 and 2017 2018 Assets Cash Accounts receivable, net Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities Equity Common stock, no par value Retained earnings Total liabilities and equity 2017 $ 56, 990 57,100 14, 180 17,300 126, 40100,89 197,480 174, 400 78,000 59,200 (31,700)(21,809) $235,700 $211,800 36 s 33,700 S 36,209 800 34, 30 37, e00 608 170, 890157, 400 31,4017.480 $235, 70e $211,880 MONTGOMERY INC. Income Statenent For Year Ended Decenber 31, 2018 Sales Cost of goods sold Gross profit Operating expenses $ 61, 500 (25, 569) 36, 000 $9,980 7, 600 Depreciation expense Other expenses Total operating expense Income before taxes Income tax expense Net income 17, 598 18, 500 4, 580 s 14, 806 (Prey 10f 2 Next >Explanation / Answer
MONTGOMERY, INC.
Statement of Cash Flows (Indirect Method)
For year ended December 31, 2018
Net Income----------------(a)
14000
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
Depreciation
9900
Changes in current operating assets and liabilities:
Decrease in Accounts Receivables
+3200
Increase in Inventory
-26400
Decrease in Accounts payable
-2500
Decrease in Salary payable
-200
Cash used in operating activities--------(b)
-16000
Cash flow from Investing Activities:
Purchase of equipment
-10800
Cash used in investing activities-------(c)
-10800
Cash flow from Financing Activities:
Proceeds from issue of additional stock
+12600
Cash provided by financing activities------(d)
+12600
Net Decrease in Cash [a-b-c-d]
-200
Beginning cash balance
57100
Ending cash balance
$ 56900
MONTGOMERY, INC.
Statement of Cash Flows (Indirect Method)
For year ended December 31, 2018
Net Income----------------(a)
14000
Adjustments to reconcile net income to net cash provided by operations:
Income statement items not affecting cash
Depreciation
9900
Changes in current operating assets and liabilities:
Decrease in Accounts Receivables
+3200
Increase in Inventory
-26400
Decrease in Accounts payable
-2500
Decrease in Salary payable
-200
Cash used in operating activities--------(b)
-16000
Cash flow from Investing Activities:
Purchase of equipment
-10800
Cash used in investing activities-------(c)
-10800
Cash flow from Financing Activities:
Proceeds from issue of additional stock
+12600
Cash provided by financing activities------(d)
+12600
Net Decrease in Cash [a-b-c-d]
-200
Beginning cash balance
57100
Ending cash balance
$ 56900
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