Financial Accounting Final Exam Name Chapter 12 Reporting Cash Flows Fitz Compan

Question

Financial Accounting Final Exam Name Chapter 12 Reporting Cash Flows Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015. Selected 2015 Income Statement Data Net income Depreciation expense $374,000 44,000 7.200 6,000 Selected Year-End 2015 Balance Sheet Data Accounts receivable decrease Inventory decrease. $17,100 42,000 4,700 8,200 1.200 s increase Accounts payable decrease Salaries payable increase. Compute cash flows from investing activities using the following company information. . 16,000 5,000 Cash collections from customers . Cash collections from customers .. . . . . . . Depreciation expense 2.000

Explanation / Answer

FITZ Company

Statement of Cash flows for the year ended December 31,2015

Cash flows from operating activities:

Net income 374000

add: depreciation 44000

amortisation 7200

less:gainon sale of equipment (6000)

add: salaries payable increase 1200

decrease in accounts receivable 17100

Inventory decrease 42000

less: prepaid expenses increase (4700)

accounts payable (8200)

Cash flows from operating activities 466600

2. Cash flows from investing activities:

Sale of short term investments 6000

cash collections from customers 16000

purchase of used equipment (5000)

Cash flows from investing activities 17000.

3. Cash flows from financing activities:

additional short term borrowings 20000

purchase of short term investments (5000)

Dividends (16000)

Interest (8000)

cash flows from financing activities (9000)

Salaries and wages expense 255000

less: salaries & wages payable prior year end (8200)

add: salaries & wages payable current year end 10900

257700.

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