Select data from the income statement of cash flows for Beer Co. for hear ending
ID: 2505313 • Letter: S
Question
Select data from the income statement of cash flows for Beer Co. for hear ending in 12/31/XX
Income statement data:
Net Earnings 1,400,000
Depreciation 300,000
Amortization on Patent 10,000
Gain on sale of piece of equipment 5,000
Statement of cashflows data
Cash 01/01/XX 2,333,000
Cash 12/21/XX 2,053,000
Cash Paid to retire bonds 1,000,000
Cash Recieved from bond sale to purchase land 1,100,000
Decrease in prepaid expenses 10,000
decrease in tax payable 35,600
increase in accounts payable 27,000
increase in wages payable 82,000
increase in merchandise inventory 43,000
purchase of building from bond proceeds & operating cash 2,300,000
Sold a piece of equipments with a cost of 150,000 and accum. depreciation of 127,000 28,0000
Prepapre statement. ending cash balance is 1,859,600.
Explanation / Answer
Statement of Cash flows using the Indirect Method:-
Particulars
Amount($)
Cash flow from OPERATING activities:-
Net Earnings
1400000
Add:- Depreciation
300000
Add:- Amortization on Patent
10000
Less:- Gain on sale of piece of equipment
(5000)
Adjustment for working capital changes:-
Add:- Decrease in prepaid expenses
10000
Less:- Decrease in tax payable
(35600)
Add:- Increase in accounts payable
27000
Add:-Increase in wages payable
82000
Less:-Increase in merchandise inventory
(43000)
Net cash inflow from Operating activities:-
1745400
Cash flow from INVESTING Activities:-
Purchase of building from bond proceeds & operating cash
(2300000)
Sold a piece of equipment
28000
Net cash inflow from INVESTING activities:-
(2272000)
Cash flow from FINANCING Activities:-
Cash Paid to retire bonds
(1000000)
Cash Recieved from bond sale to purchase land
1100000
Net cash inflow from FINANCING activities:-
100000
NET CASH OUTFLOW DURING THE YEAR [1745400
Statement of Cash flows using the Indirect Method:-
Particulars
Amount($)
Cash flow from OPERATING activities:-
Net Earnings
1400000
Add:- Depreciation
300000
Add:- Amortization on Patent
10000
Less:- Gain on sale of piece of equipment
(5000)
Adjustment for working capital changes:-
Add:- Decrease in prepaid expenses
10000
Less:- Decrease in tax payable
(35600)
Add:- Increase in accounts payable
27000
Add:-Increase in wages payable
82000
Less:-Increase in merchandise inventory
(43000)
Net cash inflow from Operating activities:-
1745400
Cash flow from INVESTING Activities:-
Purchase of building from bond proceeds & operating cash
(2300000)
Sold a piece of equipment
28000
Net cash inflow from INVESTING activities:-
(2272000)
Cash flow from FINANCING Activities:-
Cash Paid to retire bonds
(1000000)
Cash Recieved from bond sale to purchase land
1100000
Net cash inflow from FINANCING activities:-
100000
NET CASH OUTFLOW DURING THE YEAR [1745400
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