XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 40,000 121,200 28,600 38,200 100,700 (25,200) (30,500) $ 200,400 $ 171,500 $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 $ 36,400 1,600 43,100 89,400 72,800 29,900 17,900 $ 200,400 $ 171,500 Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. £ Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes o 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, current year, using the indirect method. Note: Lift carh outflow or nogative amountr
XS Supply Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized below: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Gain on sale of equipment Cost of goods sold Other expenses Net income Current Year Prior Year $ 29,200 $ 34,200 35,500 40,000 121,200 28,600 38,200 100,700 (25,200) (30,500) $ 200,400 $ 171,500 $ 122,000 1,000 72,000 39,000 $ 12,000 $ 27,700 1,700 51,400 $ 36,400 1,600 43,100 89,400 72,800 29,900 17,900 $ 200,400 $ 171,500 Additional data: a. Bought equipment for cash, $32,500. Sold equipment with original cost of $12,000, accumulated depreciation of $9,000, for $4,000 cash. b. Paid $8,300 on the long-term note payable. c. Issued new shares of stock for $16,600 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $14,300; wages, $13,200; taxes, $6,200; and other, $5,300. £ Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes o 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, current year, using the indirect method. Note: Lift carh outflow or nogative amountr
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 3PB: The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: The...
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