PR 13-2A Statement of cash flows-indirect method and The comparative balance she

Question

PR 13-2A Statement of cash flows-indirect method and The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20 is as follows: Dec. 31, 20Y8 Dec.31,20 Assets s 80,000 $ 1000 275,000 300,000 Cash.. Accounts recelvable (net) Inventories... Prepaid expenses 510,000 15,000 4000 10,000 quipment. Accumulated depreciation-equipment 070,000 750,00 (200,000) -6000 $1750000 51,4000 Total assets Liabilities and Stockholders Equity Accounts payable (merchandise creditors) $ 100,000 9000 0 400,000 300,00020000 00,000 Paid-in capital: Excess of issue price over par-common stock.... 610.00 750,000

Explanation / Answer

Transactions

Debit

Transactions

Credit

Yellow Dog Enterprises Inc. Statement of Cash Flows For The Year Ended December 31,20X8 Cash flows from operating activities:      Net income $190000     Adjustments to reconcile net income to net cah flow from operating activities :         Depreciation 115000     Changes in current operating assets and liabilities :         Decrease in accounts receivable 25000         Increase in inventory (110000)         Increase in prepaid expenses (5000)         Increase in accounts payable 10000      Net cah flow from operating activities $225000 Cash flows from investing activities :      Cash paid for equipment $(395000)        Net cash flow used for investing activities (395000) Cash flows from financing activies :      Cash received from sale of common stock $600000      Cash paid for dividends (50000)      Cash paid to retire mortgage mote payable (400000)         Net cash flow used for financing activities 150000 Change in cash $(20000) Cash at the beginning of the year 100000 Cash at the end of the year $80000 NOTE : The disposal of fully depreciated equipment is not included in the cash flow statement because there is no associated cash flow . This makes to eliminate the involvement of $75000 from the equipment and accumulated depreciation of equipment account.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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