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Required: 1. 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 INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities Snipping Tool 回 Cash Flows from Investing Activities Cash Flows from Financing Activities Audio City, Incorporated, 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 Current Year Previous Year Balance Sheet at December 31 Cash $ 85,100 $87,000 Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $83,000. b. Paid $20,000 on the long-term notes payable. c. Issued new shares of stock for $40,000 cash d. Dividends of $6,000 were paid in cash. 19,000 28,000 243,000 (75,000) $ 300,100 2,100 65,000 120,000 25,000 25,000 160,000 (55,000) $ 242,000 $ 21,000 1,000 85,000 80,000 104,000 55,000 $242,000 $ 300,100 $ 230,000 100,000 75,000 $ 55,000 e. Other expenses included depreciation, $20,000; salaries and wages, $25,000; taxes, $30,000 f. 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. Required: 1. 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.)

Required: 1. 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 INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities Snipping Tool 回 Cash Flows from Investing Activities Cash Flows from Financing Activities Audio City, Incorporated, 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 Current Year Previous Year Balance Sheet at December 31 Cash $ 85,100 $87,000 Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $83,000. b. Paid $20,000 on the long-term notes payable. c. Issued new shares of stock for $40,000 cash d. Dividends of $6,000 were paid in cash. 19,000 28,000 243,000 (75,000) $ 300,100 2,100 65,000 120,000 25,000 25,000 160,000 (55,000) $ 242,000 $ 21,000 1,000 85,000 80,000 104,000 55,000 $242,000 $ 300,100 $ 230,000 100,000 75,000 $ 55,000 e. Other expenses included depreciation, $20,000; salaries and wages, $25,000; taxes, $30,000 f. 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. Required: 1. 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.)

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.20MCE
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Required: 1. 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 INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities Snipping Tool 回 Cash Flows from Investing Activities Cash Flows from Financing Activities Audio City, Incorporated, 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 Current Year Previous Year Balance Sheet at December 31 Cash $ 85,100 $87,000 Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $83,000. b. Paid $20,000 on the long-term notes payable. c. Issued new shares of stock for $40,000 cash d. Dividends of $6,000 were paid in cash. 19,000 28,000 243,000 (75,000) $ 300,100 2,100 65,000 120,000 25,000 25,000 160,000 (55,000) $ 242,000 $ 21,000 1,000 85,000 80,000 104,000 55,000 $242,000 $ 300,100 $ 230,000 100,000 75,000 $ 55,000 e. Other expenses included depreciation, $20,000; salaries and wages, $25,000; taxes, $30,000 f. 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. Required: 1. 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.)
Transcribed Image Text:Required: 1. 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 INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Changes in Current Assets and Current Liabilities Snipping Tool 回 Cash Flows from Investing Activities Cash Flows from Financing Activities Audio City, Incorporated, 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 Current Year Previous Year Balance Sheet at December 31 Cash $ 85,100 $87,000 Accounts Receivable Inventory Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Sales Revenue Cost of Goods Sold Other Expenses Net Income Additional Data: a. Bought equipment for cash, $83,000. b. Paid $20,000 on the long-term notes payable. c. Issued new shares of stock for $40,000 cash d. Dividends of $6,000 were paid in cash. 19,000 28,000 243,000 (75,000) $ 300,100 2,100 65,000 120,000 25,000 25,000 160,000 (55,000) $ 242,000 $ 21,000 1,000 85,000 80,000 104,000 55,000 $242,000 $ 300,100 $ 230,000 100,000 75,000 $ 55,000 e. Other expenses included depreciation, $20,000; salaries and wages, $25,000; taxes, $30,000 f. 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. Required: 1. 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.)
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