Prepare a statement of cash flowsâindirect method.
(LO 2), AP
Here are comparative balance sheets for Velo Company.
VELO COMPANY
Comparative Balance Sheets
December 31
Assets 2017 2016 Cash $â63,000â $â22,000â Accounts receivable 85,000â 76,000â Inventory 170,000â 189,000â Land 75,000â 100,000â Equipment 270,000â 200,000â Accumulated depreciationâequipment (66,000) (32,000) Total $597,000â $555,000â Liabilities and Stockholders' Equity Accounts payable $â39,000â $â47,000â Bonds payable 150,000â 200,000â Common stock ($1 par) 216,000â 174,000â Retained earnings 192,000â 134,000â Total $597,000â $555,000â
Additional information:
Net income for 2017 was $93,000.
Cash dividends of $35,000 were declared and paid.
Bonds payable amounting to $50,000 were redeemed for cash$50,000.
Common stock was issued for $42,000 cash.
No equipment was sold during 2017, but land was sold atcost.
Instructions
Prepare a statement of cash flows for 2017 using the indirectmethod.
Prepare a statement of cash flowsâindirect method.
(LO 2), AP
Here are comparative balance sheets for Velo Company.
| VELO COMPANY Comparative Balance Sheets December 31 | ||
|---|---|---|
| Assets | 2017 | 2016 |
| Cash | $â63,000â | $â22,000â |
| Accounts receivable | 85,000â | 76,000â |
| Inventory | 170,000â | 189,000â |
| Land | 75,000â | 100,000â |
| Equipment | 270,000â | 200,000â |
| Accumulated depreciationâequipment | (66,000) | (32,000) |
| Total | $597,000â | $555,000â |
| Liabilities and Stockholders' Equity | ||
| Accounts payable | $â39,000â | $â47,000â |
| Bonds payable | 150,000â | 200,000â |
| Common stock ($1 par) | 216,000â | 174,000â |
| Retained earnings | 192,000â | 134,000â |
| Total | $597,000â | $555,000â |
Additional information:
Net income for 2017 was $93,000.
Cash dividends of $35,000 were declared and paid.
Bonds payable amounting to $50,000 were redeemed for cash$50,000.
Common stock was issued for $42,000 cash.
No equipment was sold during 2017, but land was sold atcost.
Instructions
Prepare a statement of cash flows for 2017 using the indirectmethod.
Related questions
DO IT! 12-2b
Prepare statement of cash flowsâindirect method.
(LO 2), AP
Alex Company reported the following information for 2017.
| ALEX COMPANY Comparative Balance Sheets December 31 | |||
|---|---|---|---|
Assets | 2017 | 2016 | Change Increase/Decrease |
Cash | $ 59,000â | $ 36,000â | $ 23,000 Increase |
Accounts receivable | 62,000â | 22,000â | â40,000 Increase |
Inventory | 44,000â | -0- | â44,000 Increase |
Prepaid expenses | 6,000â | 4,000â | 2,000 Increase |
Land | 55,000â | 70,000â | 15,000 Decrease |
Buildings | 200,000â | 200,000â | â-0- |
Accumulated depreciationâbuildings | (21,000) | (14,000) | 7,000 Increase |
Equipment | 183,000â | 68,000â | 115,000 Increase |
Accumulated depreciationâequipment | (28,000) | (10,000) | 18,000 Increase |
Totals | $560,000â | $376,000â | |
Liabilities and Stockholders' Equity | |||
Accounts payable | $ 43,000â | $ 40,000â | $ââ3,000 Increase |
Accrued expenses payable | -0- | 10,000â | 10,000 Decrease |
Bonds payable | 100,000â | 150,000â | 50,000 Decrease |
Common stock ($1 par) | 230,000â | 60,000â | 170,000 Increase |
Retained earnings | 187,000â | 116,000â | 71,000 Increase |
Totals | $560,000â | $376,000â | |
| ALEX COMPANY Income Statement For the Year Ended December 31, 2017 | ||
|---|---|---|
Sales revenue | $941,000 | |
Cost of goods sold | $475,000 | |
Operating expenses | 231,000 | |
Interest expense | 12,000 | |
Loss on disposal of equipment | 2,000 | 720,000 |
Income before income taxes | 221,000 | |
Income tax expense | 65,000 | |
Net income | $156,000 | |
Additionalinformation:
1.Operating expenses include depreciation expense of$40,000.
2.Land was sold at its book value for cash.
3.Cash dividends of $85,000 were declared and paid in 2017.
4.Equipment with a cost of $166,000 was purchased for cash.Equipment with a cost of $51,000 and a book value of $36,000 wassold for $34,000 cash.
5.Bonds of $50,000 were redeemed at their face value forcash.
6.Common stock ($1 par) of $170,000 was issued for cash.
Use this information to prepare a statement of cash flows usingthe indirect method. Answer the following questions:
a) Cash Flow from Operating Activities
b) Cash Flow from Investing Activities
c) Cash Flow from Financing Activities
I need the statement of cash flows for the Operating,Investingand Financing activities
A comparative balance sheet for Kingbird Corporation is presented below.
| December 31 | ||||||
| Assets | 2017 | 2016 | ||||
| Cash | $ 72,880 | $ 22,000 | ||||
| Accounts receivable | 84,590 | 68,710 | ||||
| Inventory | 182,590 | 191,710 | ||||
| Land | 73,590 | 112,710 | ||||
| Equipment | 262,590 | 202,710 | ||||
| Accumulated Depreciation-Equipment | (71,590 | ) | (44,710 | ) | ||
| Total | $604,650 | $553,130 | ||||
| Liabilities and Stockholders' Equity | ||||||
| Accounts payable | $ 36,590 | $ 49,710 | ||||
| Bonds payable | 150,000 | 200,000 | ||||
| Common stock ($1 par) | 214,000 | 164,000 | ||||
| Retained earnings | 204,060 | 139,420 | ||||
| Total | $604,650 | $553,130 | ||||
Additional information:
| 1. | Net income for 2017 was $130,180. No gains or losses were recorded in 2017. | |
| 2. | Cash dividends of $65,540 were declared and paid. | |
| 3. | Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2017 for Kingbird Corporation |
| MULDUR CORPORATION | |||
| Comparative Balance Sheets | |||
December 31 | |||
2012 | 2011 | ||
| Cash | $ 15,200 | $ 17,700 | |
| Accounts receivable | 25,200 | 22,300 | |
| Investments | 20,000 | 16,000 | |
| Equipment | 60,000 | 70,000 | |
| Accumulated depreciation | (14,000) | (10,000) | |
| Total | $106,400 | $116,000 | |
| Accounts payable | $ 14,600 | $ 11,100 | |
| Bonds payable | 10,000 | 30,000 | |
| Common stock | 50,000 | 45,000 | |
| Retained earnings | 31,800 | 29,900 | |
| Total | $106,400 | $116,000 | |
Additional information:
- Net income was $18,300. Dividends declared and paid were$16,400.
- Equipment which cost $10,000 and had accumulated depreciationof $1,200 was sold for $3,300.
- All other changes in noncurrent account balances had a directeffect on cash flows, except the change in accumulateddepreciation.
Prepare a statement of cash flows for 2012 using the indirectmethod.
Compute free cash flow
