Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows:
Dec. 31, 2014 Dec. 31, 2013 Assets Cash $81,420 $100,190 Accounts receivable (net) 125,110 135,070 Merchandise inventory 178,720 167,420 Prepaid expenses 7,280 5,070 Equipment 364,070 299,950 Accumulated depreciation-equipment (94,660) (73,560) Total $661,940 $634,140 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $139,010 $132,540 Mortgage note payable 0 190,240 Common stock, $1 par 21,000 13,000 Paid-in capital in excess of par-common stock 315,000 179,000 Retained earnings 186,930 119,360 Total $661,940 $634,140
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:
Net income, $172,980.
Depreciation reported on the income statement, $46,000.
Equipment was purchased at a cost of $89,020, and fully depreciated equipment costing $24,900 was discarded, with no salvage realized.
The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.
8,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $105,410.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.
Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows:
| Dec. 31, 2014 | Dec. 31, 2013 | ||||
| Assets | |||||
| Cash | $81,420 | $100,190 | |||
| Accounts receivable (net) | 125,110 | 135,070 | |||
| Merchandise inventory | 178,720 | 167,420 | |||
| Prepaid expenses | 7,280 | 5,070 | |||
| Equipment | 364,070 | 299,950 | |||
| Accumulated depreciation-equipment | (94,660) | (73,560) | |||
| Total | $661,940 | $634,140 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable (merchandise creditors) | $139,010 | $132,540 | |||
| Mortgage note payable | 0 | 190,240 | |||
| Common stock, $1 par | 21,000 | 13,000 | |||
| Paid-in capital in excess of par-common stock | 315,000 | 179,000 | |||
| Retained earnings | 186,930 | 119,360 | |||
| Total | $661,940 | $634,140 | |||
Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:
Net income, $172,980.
Depreciation reported on the income statement, $46,000.
Equipment was purchased at a cost of $89,020, and fully depreciated equipment costing $24,900 was discarded, with no salvage realized.
The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.
8,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $105,410.
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash and for any adjustments, if required.
Related questions
Statement of Cash FlowsâIndirect Method
The comparative balance sheet of Amelia Enterprises, Inc. atDecember 31, 2014 and 2013, is as follows:
| Dec. 31, 2014 | Dec. 31, 2013 | ||||
| Assets | |||||
| Cash | $72,150 | $88,890 | |||
| Accounts receivable (net) | 110,870 | 119,830 | |||
| Merchandise inventory | 158,400 | 148,510 | |||
| Prepaid expenses | 6,450 | 4,500 | |||
| Equipment | 322,640 | 266,100 | |||
| Accumulated depreciation-equipment | (83,890) | (65,260) | |||
| Total | $586,620 | $562,570 | |||
| Liabilities and Stockholders'Equity | |||||
| Accounts payable (merchandise creditors) | $123,190 | $117,580 | |||
| Mortgage note payable | 0 | 168,770 | |||
| Common stock, $1 par | 19,000 | 12,000 | |||
| Paid-in capital in excess of par-common stock | 278,000 | 159,000 | |||
| Retained earnings | 166,430 | 105,220 | |||
| Total | $586,620 | $562,570 | |||
Additional data obtained from the income statement and from anexamination of the accounts in the ledger for 2014 are asfollows:
Net income, $156,700.
Depreciation reported on the income statement, $40,720.
Equipment was purchased at a cost of $78,630, and fullydepreciated equipment costing $22,090 was discarded, with nosalvage realized.
The mortgage note payable was not due until 2016, but the termspermitted earlier payment without penalty.
7,000 shares of common stock were issued at $18 for cash.
Cash dividends declared and paid, $95,490.
Required:
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash out flows, cash payments, decreases in cash andfor any adjustments, if required.
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Following are selected balance sheet accounts of Allman Bros.Corp. at December 31, 2014 and 2013, and the increases or decreasesin each account from 2013 to 2014. Also presented is selectedincome statement information for the year ended December 31, 2014,and additional information.
| Selected balance sheet accounts | |||||||||
| Assets | 2014 | 2013 | Increase | ||||||
| Accounts receivable | $33,540 | $23,280 | $10,260 | ||||||
| Property, plant, and equipment | 277,720 | 247,550 | 30,170 | ||||||
| Accumulated depreciationâplant assets | (178,020 | ) | (166,120 | ) | (11,900 | ) | |||
| Liabilities and stockholdersâ equity | 2014 | 2013 | Increase | ||||||
| Bonds payable | $ 49,260 | $45,910 | $3,350 | ||||||
| Dividends payable | 8,290 | 5,110 | 3,180 | ||||||
| Common stock, $1 par | 21,750 | 19,230 | 2,520 | ||||||
| Additional paid-in capital | 9,530 | 3,160 | 6,370 | ||||||
| Retained earnings | 103,010 | 91,190 | 11,820 | ||||||
| Selected income statement information forthe year ended December 31, 2014 | |||||||||
| Sales revenue | $155,040 | ||||||||
| Depreciation | 38,660 | ||||||||
| Gain on sale of equipment | 15,420 | ||||||||
| Net income | 31,250 | ||||||||
Additional information:
| 1. | During 2014, equipment costing $44,130 was sold for cash. | |
| 2. | Accounts receivable relate to sales of merchandise. | |
| 3. | During 2014, $24,540 of bonds payable were issued in exchangefor property, plant, and equipment. There was no amortization ofbond discount or premium. |
Determine the category (operating, investing, or financing) and theamount that should be reported in the statement of cash flows forthe following items.
