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P12-3 (Supplement A) Preparing a Statement of Cash Flows (Direct Method) Sharp S

ID: 2477914 • Letter: P

Question

P12-3 (Supplement A) Preparing a Statement of Cash Flows (Direct Method)

Sharp Screen Films, Inc., is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

  

Prepare the statement of cash flows using the direct method for the year ended December 31, 2015.(List cash outflows as negative amounts.)

Sharp Screen Films, Inc., is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

Explanation / Answer

Sharp Screen films Cash Flow Statement for the period ending Dec 31.2015. Details Amt $ Cash Flow from Operating Expenses Cash Flow from Sales                  207,100 sales+Ar reduction Cash paid for Inventory purchase=             (111,850) cogs+inventory change+AP change Cash paid for wages =                (40,000) Other expenses +wages payable change Total Cash Flow from Operating Activities                  55,250 Cash Flow from Investing Activities Cash paid for Equipments                (59,150) Total Cash Flow from Investing Activities                (59,150) Cash Flow from Financing Activities Cash paid LT Note repay                (10,900) Cash Received new stock issue                  33,900 Cash Dividend paid                (14,750) Total Cash Flow from Financing Activities                    8,250 Total Cash flow from Operating, Investing & Financing Activities                    4,350 Cash Opening Balance                  64,500 Net Cahnge in Cash                    4,350 Closing Cash Balance                  68,850