Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN: 9781337115773
Author: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 14, Problem 46P
The following financial statements were provided by Roberts Company:
At the end of 20X2, Roberts purchased some additional equipment for $20,000.
Required:
Prepare a statement of
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Complete the following Spreadsheet for the preparation of statement of cash flows under the indirect method. (The
statement of cash flows is not required.) (Enter all amounts as positive values.)
Additional information:
a. Net income for the year was $105,000.
b. Dividends of $90,000 cash were declared and paid.
c. The only noncash expense was $75,000 of depreciation.
d. Purchased plant assets for $95,000 cash.
e. Notes payable of $25,000 were issued for $25,000 cash.
f. $55,000 increase in accounts receivable.
g. $35,000 decrease in inventory.
h. $15,000 decrease in accounts payable.
Balance Sheet-Debit Balance Accounts
Cash
Accounts receivable
Inventory
Plant assets
Balance Sheet-Credit Balance Accounts
Accumulated depreciation
Accounts payable
Notes payable
Common stock
Retained earnings
Statement of Cash Flows
Operating activities
SCORETECK CORPORATION
Spreadsheet for Statement of Cash Flows-Indirect Method
For Year Ended December 31, 2021
Investing activities
Financing activities…
An analysis of the general ledger accounts indicates that delivery equipment, which cost P80,000 and on which accumulated depreciationtotaled 36,000 on the date of sale, was sold for P37,200 during the year. Using this information, indicate the items to be reported on thestatement of cash flows
Shim Company presents its statement of cash flows using the indirect method.
The following accounts and corresponding balances were drawn from Shim’s Year 2 and Year 1 year-end balance sheets. (see below).
The income statement reported a $2,280 gain on the sale of equipment, an $810 loss on the sale of land, and $4,200 of depreciation expense. Net income for the period was $45,800.
Requirements:
Prepare the operating activities section of the statement of cash flows.
Account
Â
Year 2
Year 1
 Accounts ReceivableÂ
    31,200.00
  35,000.00
 Prepaid RentÂ
Â
       1,453.00
    1,100.00
 Interest ReceivableÂ
          650.00
       600.00
 Accounts PayableÂ
Â
       9,876.00
  12,200.00
 Salaries PayableÂ
Â
       2,625.00
    2,000.00
 Unearned RevenueÂ
       3,237.00
    4,470.00
Â
Â
Â
Â
Shim Company
Â
Cash from Operating Activities
Chapter 14 Solutions
Managerial Accounting: The Cornerstone of Business Decision-Making
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Of the three categories on the statement of cash...Ch. 14 - Prob. 4DQCh. 14 - Why is it better to report the noncash investing...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Explain how a company can report a loss and still...Ch. 14 - In computing the periods net operating cash flows,...Ch. 14 - Prob. 10DQ
Ch. 14 - In computing the periods net operating cash flows,...Ch. 14 - Explain the reasoning for including the payment of...Ch. 14 - What are the advantages in using worksheets when...Ch. 14 - Prob. 14DQCh. 14 - Cash inflows from operating activities come from...Ch. 14 - Prob. 2MCQCh. 14 - Prob. 3MCQCh. 14 - Sources of cash include a. profitable operations....Ch. 14 - Uses of cash include a. cash dividends. b. the...Ch. 14 - Prob. 6MCQCh. 14 - Prob. 7MCQCh. 14 - Which of the following adjustments to net income...Ch. 14 - An increase in accounts receivable is deducted...Ch. 14 - An increase in inventories is deducted from net...Ch. 14 - The gain on sale of equipment is deducted from net...Ch. 14 - Which of the following is an investing activity?...Ch. 14 - Which of the following is a financing activity? a....Ch. 14 - Prob. 14MCQCh. 14 - A worksheet approach to preparing the statement of...Ch. 14 - In a completed worksheet, a. the debit column...Ch. 14 - Prob. 17BEACh. 14 - Prob. 18BEACh. 14 - Prob. 19BEACh. 14 - Prob. 20BEACh. 14 - Swasey Company earned net income of 1,800,000 in...Ch. 14 - Prob. 22BEACh. 14 - Prob. 23BEACh. 14 - During 20X2, Norton Company had the following...Ch. 14 - Prob. 25BEBCh. 14 - Prob. 26BEBCh. 14 - Roberts Company provided the following partial...Ch. 14 - Prob. 28BEBCh. 14 - Prob. 29BEBCh. 14 - Prob. 30BEBCh. 14 - Prob. 31BEBCh. 14 - During 20X2, Evans Company had the following...Ch. 14 - Stillwater Designs is a private company and...Ch. 14 - Prob. 34ECh. 14 - Jarem Company showed 189,000 in prepaid rent on...Ch. 14 - During the year, Hepworth Company earned a net...Ch. 14 - During 20X1, Craig Company had the following...Ch. 14 - Tidwell Company experienced the following during...Ch. 14 - Prob. 39ECh. 14 - Oliver Company provided the following information...Ch. 14 - Prob. 41ECh. 14 - Prob. 42ECh. 14 - Prob. 43ECh. 14 - Solpoder Corporation has the following comparative...Ch. 14 - Solpoder Corporation has the following comparative...Ch. 14 - The following financial statements were provided...Ch. 14 - Prob. 47PCh. 14 - Prob. 48PCh. 14 - Booth Manufacturing has provided the following...Ch. 14 - The following balance sheets and income statement...Ch. 14 - The following balance sheets and income statement...Ch. 14 - Balance sheets for Brierwold Corporation follow:...Ch. 14 - Balance sheets for Brierwold Corporation follow:...Ch. 14 - Prob. 54PCh. 14 - Prob. 55PCh. 14 - The following balance sheets were taken from the...Ch. 14 - The following balance sheets were taken from the...Ch. 14 - The comparative balance sheets and income...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Thompson Company sold a piece of equipment that had an original cost of 22,000 and a carrying value of 10,000 for 13,000 in cash. How would this information be reported on a statement of cash flows prepared using the indirect method?arrow_forwardNanning Company reports net income of $96,100. The accounting records reveal Depreciation Expense of $51,200 as well as increases in Prepaid Rent, Accounts Payable, and Income Tax Payable of $38,800, $23,400, and $21,600, respectively. Required: Prepare the operating activities section of Electronic Wonders' statement of cash flows using the indirect method. (Amounts to be deducted and negative values should be indicated by a minus sign.) NANNING COMPANY Statement of Cash Flows (partial) Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in current assets and current liabilities: Net cash flows from operating activitiesarrow_forwardHarrison Recyclers Company uses the indirect method to prepare its statement of cash flows. Refer to the following information: Net cash provided by operating activities: $109,000 Net cash used for investing activities: $(115,500) Net cash provided by financing activities: $18,000 If the cash balance at the beginning of the year was $13,200, what is the ending cash balance? A Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 13,200.00 B Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 6,500.00 C Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 24,700.00 D Â $Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 11,500.00arrow_forward
- Staley Inc. reported the following data:Net income                          $280,000Depreciation expense                   48,000Loss on disposal of equipment            19,520Increase in accounts receivable            17,280Increase in accounts payable              8,960Prepare the Cash flows from operating activities section of the statement of cash flows, using the indirect method.arrow_forwardDemers Inc. reported the following data: Net income $490,000 Depreciation expense 52,000 Gain on disposal of equipment 26,500 Decrease in accounts receivable 32,400 Decrease in accounts payable 12,350  Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, and for any adjustments, if required.arrow_forwardPortions of the financial statements for Clear Transmissions Company are provided below. Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from operating activities:              Net Cash Flows from operating activitiesarrow_forward
- Based on the information provided below for Krackle Corp., complete the following worksheet to be used to prepare the statement of cash flows using the indirect method.           (a) Net income for the year was $30,000.      (b) Dividends of $10,000 were declared and paid.      (c) Krackle's only noncash expense was depreciation which totaled $50,000.   (d) The company purchased plant assets for $70,000.      (e) Notes payable in the amount of $40,000 were issued during the year for cash.          Krackle Corporation Spreadsheet for Statement of Cash Flows–Indirect Method For Year Ended December 31, Year 2    Analysis of Changes   12/31/Year 1  Debit  Credit 12/31/Year 2 Balance Sheet - Debits        Cash 70,000          60,000          60,000 60,000  Accounts receivable 180,000     190,000  Merchandise inventory 200,000     230,000  Plant assets 500,000     570,000  950,000…arrow_forwardAn analysis of the general ledger accounts indicates that equipment, with an original cost of $200,000 and accumulated depreciation of $170,000 on the date of sale, was sold for $20,000 during the year. Using this information, indicate the items to be reported on the statement of cash flows using the indirect method. Cash flows from operating activities:   $ Cash flows from investing activities:   $arrow_forwardn Year 1, Expert Electronics, Incorporated (EEI) recognized $6,500 of sales revenue on account and collected $3,900 of cash from accounts receivable. Further, EEI recognized $2,700 of operating expenses on account and paid $1,600 cash as partial settlement of accounts payable.RequiredBased on this information alone:a. Prepare the operating activities section of the statement of cash flows under the direct method. b. Prepare the operating activities section of the statement of cash flows under the indirect method.arrow_forward
- Alfonza Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Year 2 $12,800 7,200 Account Title Accounts receivable Accounts payable The Year 2 income statement showed net income of $26,500. Year 1 $18,500 9,400 Required a. Prepare the operating activities section of the statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)arrow_forwardFanning Incorporated presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from the company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Accounts payable The Year 2 income statement showed net income of $25,700. Year 2 $ 12,300 $ 7,800 Cash flows from operating activities Required Prepare the operating activities section of the statement of cash flows. Note: Amounts to be deducted should be indicated with minus sign. Net cash flow from operating activities $ Year 1 $ 18,500 $ 9,300 0arrow_forwardPeugeot S.A. reports the following financial information for the current year ended December 31 (euros in millions). Prepare its statement of cash flows under the indirect method. Hint: Each line item below is titled, and any necessary parentheses added, as it is reported in the statement of cash flows. Net income (loss) €1,944 Depreciation, amortization, and impairment 2,497 Losses on disposals and other . . . . . . . . . . . . . . . . . . . 94 Net decrease in current operating assets & other 1,935 Cash paid for dividends . (14) Cash from issuances of shares € 327 Cash paid for other financing activities . (1,995) Cash from disposal of plant assets & intangibles . 243 Cash paid for plant assets, intangibles & other (2,793) Cash and cash equivalents, Dec. 31, prior year . 11,292arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License