ezto.mheducation.com/hm.tpx Q Chapter 10 Learnsma ps 2-3, LO 1 CP12-3 Preparing
ID: 2590224 • Letter: E
Question
ezto.mheducation.com/hm.tpx Q Chapter 10 Learnsma ps 2-3, LO 1 CP12-3 Preparing a Statement of Cash Flows (Indirect Method) [LO 12-2, LO1 Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized 2015 2014 Balance Sheet at December 31 22,500 38,000 45,000 111,000 $55,610 Cash Accounts Receivable Inventory Equipment 35,100 38,100 20,900 Accumulated Depreciation-Equipment (41400) (34,500) $208,310 $182,000 s 30.400 26,500 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Eamings 710 47,000 93,500 57,000 69,000 28,500 $208,310 $182,000 Income Statement for 2015 Sales Revenue Cost of Goods Sold Other Expenses $109.000 65,500 30,600 Net Income $ 12,900 Additional Data: a Bought equipment for cash, $9.900 b. Paid $10,000 on the long-term note payable. c. Issued new shares of stock for $24,500 cash. d. Declared and paid a $4,700 cash dividend e. Other expenses included depreciation, $6,900, salaries and wages, $10,900, taxes, $3,900, utilities, $8,900 t. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2015, using the indirect method Amounts to be deducted should be Indicated with a minus sign.) HUNTER COMPANY Statement of Cash FlowsExplanation / Answer
Statement of cash flow indirect method :
Cash flow from operating activities Net income 12900 adjustment to reconcile net income Depreciation exp 6900 Decreasse account receivable 2900 Decrease inventory 6900 Increase account payable 3900 Decrease salary and wages payable (290) Net cash flow from operating activities 33210 Cash flow from investing activities Bought equipment (9900) Net cash flow from investing activities (9900) Cash flow from financing activity Repaid long term notes (10000) Issue common stock 24500 Dividend paid (4700) Net cash flow from financing activity 9800 Net cash flow 33110 Beginning cash 22500 Ending cash 55610Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.