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 $ $ $
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 | ||
| $ | ||
| $ | ||
| $ | ||
Related questions
| The Murdock Corporation reported the following balance sheet data for 2016 and 2015: |
| 2016 | 2015 | |||||
| Cash | $ | 84,035 | $ | 26,555 | ||
| Available-for-sale securities (not cash equivalents) | 18,500 | 91,000 | ||||
| Accounts receivable | 86,000 | 73,650 | ||||
| Inventory | 171,000 | 150,400 | ||||
| Prepaid insurance | 2,040 | 2,600 | ||||
| Land, buildings, and equipment | 1,262,000 | 1,131,000 | ||||
| Accumulated depreciation | (616,000 | ) | (578,000 | ) | ||
| Total assets | $ | 1,007,575 | $ | 897,205 | ||
| Accounts payable | $ | 81,740 | $ | 154,670 | ||
| Salaries payable | 22,400 | 27,500 | ||||
| Notes payable (current) | 30,400 | 81,000 | ||||
| Bonds payable | 206,000 | 0 | ||||
| Common stock | 300,000 | 300,000 | ||||
| Retained earnings | 367,035 | 334,035 | ||||
| Total liabilities and shareholders' equity | $ | 1,007,575 | $ | 897,205 | ||
| Additional information for 2016: |
| Sold available-for-sale securities costing $72,500 for $77,600. |
| Equipment costing $20,000 with a book value of $5,600 was sold for $6,900. |
| Issued 6% bonds payable at face value, $206,000. |
| Purchased new equipment for $151,000 cash. |
| Paid cash dividends of $23,000. |
| Net income was $56,000. |
| Required: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
| Dec. 31, 20Y9 | Dec. 31, 20Y8 | ||||
| Assets | |||||
| Cash | $266,740 | $248,130 | |||
| Accounts receivable (net) | 96,630 | 89,120 | |||
| Inventories | 272,790 | 263,860 | |||
| Investments | 0 | 102,220 | |||
| Land | 139,910 | 0 | |||
| Equipment | 300,960 | 233,280 | |||
| Accumulated depreciationâequipment | (70,460) | (62,910) | |||
| Total assets | $1,006,570 | $873,700 | |||
| Liabilities and Stockholders' Equity | |||||
| Accounts payable | $182,190 | $172,120 | |||
| Accrued expenses payable | 18,120 | 22,720 | |||
| Dividends payable | 10,070 | 7,860 | |||
| Common stock, $10 par | 54,350 | 42,810 | |||
| Paid-in capital: Excess of issue price over par-common stock | 204,330 | 118,820 | |||
| Retained earnings | 537,510 | 509,370 | |||
| Total liabilities and stockholdersâ equity | $1,006,570 | $873,700 | |||
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $92,000 cash.
The common stock was issued for cash.
There was a $69,200 credit to Retained Earnings for net income.
There was a $41,060 debit to Retained Earnings for cash dividends declared.
Required:
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, or any negative adjustments.
| Merrick Equipment Co. | ||
| Statement of Cash Flows | ||
| For the Year Ended December 31, 20Y9 | ||
| Cash flows from operating activities: | ||
| $ | ||
| Adjustments to reconcile net income to net cash flow from operating activities: | ||
| Changes in current operating assets and liabilities: | ||
| Net cash flow from operating activities | $ | |
| Cash flows from (used for) investing activities: | ||
| $ | ||
| Net cash flow used for investing activities | ||
| Cash flows from (used for) financing activities: | ||
| Net cash flow from financing activities | ||
| $ | ||
| Cash at the beginning of the year | ||
| Cash at the end of the year | $ | |
