XS Supply Company is developing its annual financial statements at December 31.

Question

XS Supply Company 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:

Other expenses included depreciation, $4,100; Salaries and wages, $19,100; taxes, $5,100; utilities, $5,900.

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.

Prepare the statement of cash flows for the current year ended December 31 using the indirect method.(Amounts to be deducted should be indicated with a minus sign.

XS Supply Company 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:

Explanation / Answer

11,300 net income
- 6,100 increase in A/R
- 2,100 increase in inventory
+ 4,100 depreciation expense
+ 8,100 increase in A/P
- 110 decrease in wages payable
= $15,190 cash flow from operating activities

Investing Activities
- 16,500 purchased equipment
= $16,500 used by investing activities

Financing Activities
+ 11,500 issued common stock
- 5,100 paid on long-term loan
= $6,400 cash flow from financing activities

Total cash flow=15190-16500+6400=$5,090

Cash at end of year=5090+27000=$32,090

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