Audio City, Inc. is developing its annual financial statements at December 31. T

Question

Audio City, Inc. is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below:

Accounts Payable includes only inventory purchases made on credit. Because a liability relating to taxes does not exist, assume that they were fully paid in cash.

Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)

Audio City, Inc. is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below:

Explanation / Answer

Audio City Statement of cash Flows For the year ended december 31 Net Income 54500 Adjustments to reconcile net income Depriciation Expense 73500-54000 19500 Decrease in accounts receivable 24500-18600 5900 Increase in merchandise inventory -27400+24500 -2900 Decrease in accounts payable 8900-20800 -11900 Incease in wages payable 2000-1000 1000 Net cash provided by operating activity 11600 Cash flow from innvesting activities Cash payments to purchase equipment -82000 Net cash provided by used in ( investing activity) -82000 Cash flow from Financing activities Cash payments on long term note -19500 Cash receipts from issusing stock 39000 cash dividend paid -5900 Net cash provided by financing activities 13600 Net decrease in cash during the year -2300 Beginning balance of cash jan 1 84800 Ending balance of cash dec 31 82500

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

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