SOMEONE PLEASE HELP I NEED THEM ALL CORRECT PLEASE. Statement of Cash Flows—Indi
ID: 2487032 • Letter: S
Question
SOMEONE PLEASE HELP I NEED THEM ALL CORRECT PLEASE.
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows:
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:
Net income, $178,660.
Depreciation reported on the income statement, $46,370.
Equipment was purchased at a cost of $90,700, and fully depreciated equipment costing $24,830 was discarded, with no salvage realized.
The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.
8,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $108,870.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.
Assignment Dec. 31Dec. 31, 2014 2013 Cash Accounts receivable (net) S81640 $99,950 125,450 134,740 Merchandise inventory 179,230 167,000 Prepaid expenses 1,300 5,060 Equipment 365,080 299,210 Accumulated depreciation-equipment (94,920) (73,380) Total $663,780 $632,580 Liabilities and stockholders' Equity Accounts payable (merchandise creditors) $139,390 $132,210 Mortgage note payable 189,770 Common stock, $1 par 21,000 13,000 Paid-in capital in excess of par-common stock 314,000 178,000 Retained earnings 189,390 119,600 Total $663,780 $632,580 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2Explanation / Answer
Statement of cash flows, using the indirect method of presenting cash flows from operating activities is prepared as under:
Amelia Enterprises Inc. Statement of Cash Flows For the year ended December 31, 2014 Particulars Amount ($) Amount ($) Cash Flow from operating activities: Net Income 1,78,660 Adjustments to reconcile: Add: Depreciation 46,370 Changes in current operating assets and liabilities Decrease in Accounts Receivable 9,290 Increase in merchandise inventory -12,230 Increase in prepaid expenses -2,240 Increase in Accounts Payable 7180 2,000 Net Cash flows from Operating Activities 2,27,030 Cash flows from Investing Activities: Cash paid for equipment -90,700 Net Cash flows used in investing activities -90,700 Cash flows from Financing Activities: Cash received from common stock 1,44,000 Dividends Paid -1,08,870 Cash paid to retire mortgage notes payable -1,89,770 Net Cash flows used in financing activities -1,54,640 Net increase in Cash balance -18,310 Cash as of January 1,2014 99,950 Cash as of December 31, 2014 81,640Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.