(Learning Objective 3: Prepare operating cash flowsâindirect method) Eldred Corporation accountants have assembled the following data for the year ended June 30, 2012:
Net income
$ ?
Payment of dividends
5,500
Proceeds from the issuance of common stock
15,000
Sales revenue
222,000
Increase in current assets other than cash
32,000
Purchase of treasury stock
8,000
Cost of goods sold
$114,000
Other operating expenses
39,000
Purchase of equipment
37,000
Increase in current liabilities
11,000
Payment of note payable
29,000
Proceeds from sale of land
31,000
Depreciation expense
6,000
Prepare the operating activities section of Eldredâs statement of cash flows for the year ended June 30, 2012. Eldred uses the indirect method for operating cash flows. PLEASE CHART ON COMPUTER. NO HAND WRITTEN DATA PLEASE! THANK YOU.
(Learning Objective 3: Prepare operating cash flowsâindirect method) Eldred Corporation accountants have assembled the following data for the year ended June 30, 2012:
| Net income | $ ? |
| Payment of dividends | 5,500 |
| Proceeds from the issuance of common stock | 15,000 |
| Sales revenue | 222,000 |
| Increase in current assets other than cash | 32,000 |
| Purchase of treasury stock | 8,000 |
| Cost of goods sold | $114,000 |
| Other operating expenses | 39,000 |
| Purchase of equipment | 37,000 |
| Increase in current liabilities | 11,000 |
| Payment of note payable | 29,000 |
| Proceeds from sale of land | 31,000 |
| Depreciation expense | 6,000 |
Prepare the operating activities section of Eldredâs statement of cash flows for the year ended June 30, 2012. Eldred uses the indirect method for operating cash flows. PLEASE CHART ON COMPUTER. NO HAND WRITTEN DATA PLEASE! THANK YOU.
Related questions
Natalie Daniels has completed the basic format to be used inpreparing the statement of cash flows (indirect method) for CPUHardware Designers. All amounts are in thousands (000s). |
| CPU HARDWARE DESIGNERS Statement of Cash Flows For the year ended December 31, 2015 | ||
| Cash Flows fromOperating Activities | ||
| Netincome | ||
| Adjustments for noncash effects: | ||
| Changesin current assets and current liabilities: | ||
| Net cash flows from operatingactivities | ||
| Cash Flows fromInvesting Activities | ||
| Netcash flows from investing activities | ||
| Cash Flows fromFinancing Activities | ||
| Net cash flows from financingactivities | ||
| Net increase(decrease) in cash | $ | (28,000) |
| Cash at thebeginning of the period | 90,000 | |
| Cash at the end ofthe period | $ | 62,000 |
Below, in random order, are line items to be included in thestatement of cash flows. |
| Cash received fromthe sale of land | $ 4,000 |
| Issuance of commonstock | 300,000 |
| Depreciationexpense | 30,000 |
| Increase in accountsreceivable | 70,000 |
| Increase in accountspayable | 11,000 |
| Loss on sale ofland | 8,000 |
| Purchase ofequipment | 230,000 |
| Increase ininventory | 40,000 |
| Increase in prepaidrent | 11,000 |
| Payment ofdividends | 50,000 |
| Net income | 80,000 |
| Repayment of notespayable | 60,000 |
| Required: |
Prepare the statement of cash flows for CPU Hardware Designersusing the indirect method. (List cash outflows and any decrease in cashas negative amounts. Enter your answers inthousands.) |
| CPU HARDWARE DESIGNERS | ||
| Statement of Cash Flows | ||
| For the Year Ended December 31, 2015 | ||
| Cash Flows from Operating Activities: | ||
| Adjustments to reconcile net income to net cash flows fromoperating activities | ||
| Net cash flows from operating activities | $0 | |
| Cash Flows from Investing Activities: | ||
| Net cash flows from investing activities | 0 | |
| Cash Flows from Financing Activities: | ||
| Net cash flows from financing activities | 0 | |
| Cash at the beginning of the period | ||
| Cash at the end of the period | $0 | |
Golden Corp., a merchandiser, recently completed its 2015operations. For the year, (1) all sales are credit sales, (2) allcredits to Accounts Receivable reflect cash receipts fromcustomers, (3) all purchases of inventory are on credit, (4) alldebits to Accounts Payable reflect cash payments for inventory, (5)Other Expenses are all cash expenses, and (6) any change in IncomeTaxes Payable reflects the accrual and cash payment of taxes. Thecompanyâs balance sheets and income statement follow.
| GOLDEN CORPORATION Comparative Balance Sheets December 31, 2015 and 2014 | ||||||
2015 | 2014 | |||||
| Assets | ||||||
| Cash | $ | 175,000 | $ | 120,000 | ||
| Accounts receivable | 82,000 | 66,000 | ||||
| Inventory | 605,000 | 528,000 | ||||
| Total current assets | 862,000 | 714,000 | ||||
| Equipment | 334,000 | 303,000 | ||||
| Accum. depreciationâEquipment | (157,000 | ) | (106,000 | ) | ||
| Total assets | $ | 1,039,000 | $ | 911,000 | ||
| Liabilities and Equity | ||||||
| Accounts payable | $ | 82,000 | $ | 73,000 | ||
| Income taxes payable | 32,000 | 27,000 | ||||
| Total current liabilities | 114,000 | 100,000 | ||||
| Equity | ||||||
| Common stock, $2 par value | 594,000 | 572,000 | ||||
| Paid-in capital in excess of par value, commonstock | 195,000 | 162,000 | ||||
| Retained earnings | 136,000 | 77,000 | ||||
| Total liabilities and equity | $ | 1,039,000 | $ | 911,000 | ||
| GOLDEN CORPORATION Income Statement For Year Ended December 31, 2015 | |||||
| Sales | $ | 1,802,000 | |||
| Costof goods sold | 1,088,000 | ||||
| Gross profit | 714,000 | ||||
| Operating expenses | |||||
| Depreciation expense | $ | 51,000 | |||
| Other expenses | 496,000 | 547,000 | |||
| Income before taxes | 167,000 | ||||
| Income taxes expense | 22,000 | ||||
| Netincome | $ | 145,000 | |||
| Additional Information on Year 2015Transactions | |
| a. | Purchased equipment for $31,000 cash. |
| b. | Issued 11,000 shares of common stock for $5 cash per share. |
| c. | Declared and paid $86,000 in cash dividends. |
| Required: | |
Prepare a complete statement of cash flows; report its cashinflows and cash outflows from operating activities according tothe indirect method. (Amounts to be deducted should beindicated with a minus sign.) | |
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