Complete the following schedule using the indirect method to create the operating activity for the statement of cash flows (i.e. fill in the appropriate â+â or âââ) :
Net Income
non-cash items reflected in Net Income above:
_____ Depreciation
_____ Gain on sale of an asset
_____ Loss on sale of an asset
Changes in current assets and current liabilities
_____ Decreases in current assets
_____ Increases in current assets
_____ Decreases in current liabilities
_____ Increases in current liabilities
Complete the following schedule using the indirect method to create the operating activity for the statement of cash flows (i.e. fill in the appropriate â+â or âââ) :
Net Income
non-cash items reflected in Net Income above:
_____ Depreciation
_____ Gain on sale of an asset
_____ Loss on sale of an asset
Changes in current assets and current liabilities
_____ Decreases in current assets
_____ Increases in current assets
_____ Decreases in current liabilities
_____ Increases in current liabilities
Related questions
1. Produce a balance sheet for a company that distinguishesbetween current and non-current assets and liabilities.
2. Create a balance sheet from a trial balance.
3. Create a comparison of net income based on different methods ofinventory accounting.
4. Analyze a statement of cash flows and show where each line itemcan be found or calculated from the other financialstatements.
5. Prepare a full analysis of key financial ratios for a companyand state conclusions about the financial strength of the companycompared to industry ratios.
| Create a BalanceSheet from the trial balance: | ||||
| Debits | Credits | Classification | ||
| Cash | 300,000.00 | Current asset | ||
| Sales | (10,000,000.00) | Income statement | ||
| Cost of Goods Sold | 7,000,000.00 | Income statement | ||
| Selling Expenses | 500,000.00 | Income statement | ||
| Other income | (50,000.00) | Income statement | ||
| Administrative expenses | 350,000.00 | Income statement | ||
| Interest Expenses | 12,500.00 | Income statement | ||
| Land | 300,000.00 | non-current asset | ||
| Building | 2,000,000.00 | non-current asset | ||
| Long Term bond payable | (550,000.00) | non-current liability | ||
| Accrued Liabilities | (50,000.00) | current- liability | ||
| Accumulated Depreciation Buildings | (250,000.00) | non-current asset | ||
| Equipment | 750,000.00 | non-current asset | ||
| Receivables | 100,000.00 | current asset | ||
| Allowance for doubtful accounts | (7,500.00) | current asset | ||
| Accumulated depreciation equipment | (125,000.00) | non-current asset | ||
| Common Stock | (200,000.00) | equity | ||
| Payables | (115,000.00) | current Liability | ||
| Inventories | 200,000.00 | current asset | ||
| Prepaid Expenses | 50,000.00 | current asset | ||
| Retained Earnings | (215,000.00) | equity | ||
| 11,562,500.00 | (11,562,500.00) | |||
| Assets | Equity and Liabilities | |||||||||
| Current Assets | Current Liabilities | |||||||||
| Total Current Assets | - | Total Current Liabilities | - | |||||||
| Total long term Liabilities | - | |||||||||
| Total property plant and equipment | - | |||||||||
| Total Equity | - | |||||||||
| Total Assets | - | Total Equity and liabilities | - | |||||||
The following income statement and information about changes innoncash current assets and current liabilities are reported. |
| SONAD COMPANY Income Statement For Year Ended December 31, 2015 | ||||||
| Sales | $ | 2,322,000 | ||||
| Cost of goodssold | 1,137,780 | |||||
| Gross profit | 1,184,220 | |||||
| Operatingexpenses | ||||||
| Salaries expense | $ | 318,114 | ||||
| Depreciation expense | 55,728 | |||||
| Rent expense | 62,694 | |||||
| AmortizationexpensesâPatents | 6,966 | |||||
| Utilities expense | 25,542 | 469,044 | ||||
| 715,176 | ||||||
| Gain on sale ofequipment | 9,288 | |||||
| Net income | $ | 724,464 | ||||
| Changes in current asset andcurrent liability accounts for the year that relate to operationsfollow. |
| Accountsreceivable | $ | 10,200 | increase | Accountspayable | $ | 8,675 | decrease |
| Inventory | 39,100 | increase | Salariespayable | 3,000 | decrease | ||
Required:
| Prepare only the cash flows from operating activities section ofthe statement of cash flows using the indirect method.(Amounts to be deducted should be indicated with a minussign.) It has an area on the sheet for "Changes in currentassests and liabilities not sure what goes underthere. |
