n the basis of the following data for Breach Co. for the current and preceding y

Question

n the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect me ssume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period. Stock was issued for cash-3,200 shares at par. Net income for the current year was $76,000 Cash dividends declared and paid were $13,000 Current Year Prior Year Assets Cash Accounts Receivable (net) Inventories Equipment 170,000 $74,000 85,000 90,000 395,000 370,000 195,000) (158,000) $554,500 $461,000 78,000 106,500 Total assets Liabilities and stockholders' equity Accounts Payable (merchandise creditors) Taxes Payable Common Stock, $10 par Retained Earnings Total Labilities and Stockholders' Equity $51,000 2,500 5,000 262,000 230,000 176,000 554,500 $461,000 239,000 Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments. Breach Co. Statement of Cash Flows For Year Ended December 31

Explanation / Answer

STATEMENT OF CASH FLOW Amount in $ Amount in $ Net income $             76,000 Cash flows from operating activities Adjustments for: Depreciation of the year $             37,000 $             37,000 (Increase) / Decrease in Account receivables $                7,000 Inventory Decrease / (Increase) $            -16,500 Taxes Payable $              -2,500 Accounts payable Increase / ( Decrese) $                1,000 $            -11,000 Net cash from operating activities $          1,02,000 Cash flows from investing activities Purchase of Fixed Assets Prucase of Equipment $            -25,000 Net cash used in investing activities $            -25,000 Cash flows from Financing activities Long Term liabilities Dividend Paid $            -13,000 Issue of common sTock $             32,000 Net cash used in financing activities $             19,000 Net increase in cash and cash equivalents $             96,000 Add :Cash and cash equivalents at beginning of period $             74,000 Cash and cash equivalents at end of period $          1,70,000

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.