Stacy Equipment Company for 20C:
- Net income for the year 20C was $5,000.
- Accounts receivable decreased $2,000,
- Inventories increased $4,000
- Accounts payable decreased $7,000.
- Wages payable increased $1,000
- Depreciation expense was $7,500.
- A new service truck was purchased for $14,000.
- Issued $30,000 common stock in exchange for a newequipment.
- The company borrowed $18,000 on a two-year note from thebank.
- Dividends of $7,000 were paid in cash.
- The beginning cash balance was $10,000
1. Determine cash flows from operating activities using theindirect method
2. How much is cash flows from investing activities?
3. How much is cash flows from financing activities?
4. How much is the net change in cash account during theyear?
5. How much is the ending cash balance?
Stacy Equipment Company for 20C:
- Net income for the year 20C was $5,000.
- Accounts receivable decreased $2,000,
- Inventories increased $4,000
- Accounts payable decreased $7,000.
- Wages payable increased $1,000
- Depreciation expense was $7,500.
- A new service truck was purchased for $14,000.
- Issued $30,000 common stock in exchange for a newequipment.
- The company borrowed $18,000 on a two-year note from thebank.
- Dividends of $7,000 were paid in cash.
- The beginning cash balance was $10,000
1. Determine cash flows from operating activities using theindirect method
2. How much is cash flows from investing activities?
3. How much is cash flows from financing activities?
4. How much is the net change in cash account during theyear?
5. How much is the ending cash balance?
Related questions
Statement of Cash Flows
The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016:
Net income, $41,500
Payment of dividends, $15,700
Ten-year, $34,400 bonds payable were issued at face value
Depreciation expense, $15,700
Building acquired at a cost of $39,900
Accounts receivable decreased by $3,200
Accounts payable decreased by $3,100
Equipment acquired at a cost of $7,600
Inventories increased by $7,700
Beginning cash balance, $24,600
Required:
Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts.
| ROCKY HORROR PICTURE CO. | ||
| Statement of Cash Flows | ||
| For Year Ended December 31, 2016 | ||
| Net Cash Flow From Operating Activities | ||
| $ | ||
| Adjustments for differences between income flows and cash flows from operating activities: | ||
| $ | ||
| Cash Flows From Investing Activities | ||
| $ | ||
| Cash Flows From Financing Activities | ||
| $ | ||
| $ | ||
| $ | ||
The balance sheet for Plasma Screens Corporation along with additional information, are provided below:
| PLASMA SCREENS CORPORATION Balance Sheets December 31, 2018 and 2017 | ||||
| 2018 | 2017 | |||
| Assets: | ||||
| Current assets: | ||||
| Cash | $ | 82,000 | $ | 120,000 |
| Accounts receivable | 72,000 | 96,000 | ||
| Inventory | 65,000 | 80,000 | ||
| Prepaid rent | 5,000 | 4,000 | ||
| Long-term assets: | ||||
| Land | 500,000 | 500,000 | ||
| Equipment | 800,000 | 600,000 | ||
| Accumulated depreciation | (380,000) | (300,000) | ||
| Total assets | $ | 1,144,000 | $ | 1,100,000 |
| Liabilities and Stockholders' Equity: | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 78,000 | $ | 82,000 |
| Interest payable | 5,000 | 9,000 | ||
| Income tax payable | 9,000 | 7,000 | ||
| Long-term liabilities: | ||||
| Notes payable | 75,000 | 150,000 | ||
| Stockholders' equity: | ||||
| Common stock | 600,000 | 600,000 | ||
| Retained earnings | 377,000 | 252,000 | ||
| Total liabilities and stockholders' equity | $ | 1,144,000 | $ | 1,100,000 |
Additional Information for 2018:
1. Net income is $160,000.
2. The company purchases $200,000 in equipment.
3. Depreciation expense is $80,000.
4. The company repays $75,000 in notes payable.
5. The company declares and pays a cash dividend of $35,000.
Prepare the statement of cash flows using the indirect method.
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