Need Statements of Cash Flow (indirect) --------- Santana Rey, owner of Business
ID: 2487432 • Letter: N
Question
Need Statements of Cash Flow (indirect)
---------
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.)
Prepare a statement of cash flows for Business Solutions using the indirect method for the three months ended March 31, 2016. Recall that the owner Santana Rey contributed $27,000 to the business in exchange for additional stock in the first quarter of 2016 and has received $4,500 in cash dividends.(Amounts to be deducted should be indicated with a minus sign.)
Santana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her business. (Although the serial problem allowed for various ownership changes in earlier chapters, we will prepare the statement of cash flows using the following financial data.)
Explanation / Answer
Statement of Cash Flow Particulars Amount Total Amount Income 18,943.00 Depreciation - Office Equipment 310.00 Depreciation - Computer Equipment 1,180.00 Increase in AR (17,999.00) Increase in inventory (644.00) Increasein Supplies (1,495.00) Decrease in prepaid insurance 575.00 Decrease in AP (1,110.00) Increase in Wages Payable 335.00 Decrease in Unearned computer service revenue (1,800.00) Cash flow from operating activities (1,705.00) Cash flow from Investing activities Sale of invt Cash flow from Investing activities Cash flow from Financing activities Issue of Stock 27,000.00 Dividends Paid (4,500.00) Cash flow from Financing activities 22,500.00 Opening cash and cash equivalents 51,342.00 Closing cash and cash equivalents 72,137.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.