Exercise 13-12 (Indirect Method) The comparative unclassified statement of finan

Question

Exercise 13-12 (Indirect Method) The comparative unclassified statement of financial position for Puffy Ltd. follows: PUFFY LTD. Statement of Financial Position December 31 Assets Cash Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Total assets 2015 2014 $55,230 $20,520 78,510 189,570 194,840 68,080 101,100 261,970 199,350 (65,240)(31430) $592,880 $562,890 83,270 Liabilities and Shareholders' Equity Accounts payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $592,880 $38,070 $46,590 155,710 211,210 197,230 172,290 201,870 132,800 $562,890 Additional information: 1. Profit was $110,630 2. Sales were $973,860 3. Cost of goods sold was $752,200 4. Operating expenses were $43,180, exclusive of depreciation expense. 5. Depreciation expense was $33,810 6. Interest expense was $13,600 7. Income tax expense was $26,240 8. Land was sold at a gain of $5,800 9. No equipment was sold during the year. 10. $55,500 of the bank loan was repaid during the year 11. Common shares were issued for $24,940 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Explanation / Answer

CASHFLOW STATEMENT Cashflows from Operating Activites Net profitt for the year 110630 Adjustment to reconcile the profits Depreciation expense 33810 Interest expense 13600 Gain on sale of land -580 Increase in Accounts rec. -4760 Decreasse in inventory 5270 Decrease in Accounts payable -8520 38820 Net cash provided from Operating Activities 149450 Cashflows ffrom Investing Activities: Sale of Land (101100-68080 +580) 33600 Purchase of Equipment -62620 (261970-199350) Net cash iused in invnesting activities -29020 Cashflows from Financing activities: Repayment of laon -55,500 Interest paud -13600 Dividend paid (132800+110630-201870) -41560 Issue of common stock 24940 Net cash usued in financing Activities -85720 Net Increasse in cash 34710 Add: beginning Balance in cash 20520 Ending Balance in Cash 55230

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.