Statement of Cash Flows
The following is a list of the items to be included in thepreparation of Warrick Company's 2016 statement of cash flows:
Net income, $59,200
Payment for purchase of building, $98,000
Increase in accounts receivable, $7,400
Proceeds from issuance of common stock, $37,100
Increase in accounts payable, $4,500
Proceeds from sale of land, $7,000
Depreciation expense, $12,600
Payment of dividends, $36,000
Gain on sale of land, $5,300
Decrease in inventory, $3,700
Payment for purchase of long-term investments, $9,600
Amortization of discount on bonds payable, $1,900
Proceeds from issuance of note, $18,000
Increase in deferred taxes payable, $5,000
Equipment acquired by capital lease, $19,500
Decrease in salaries payable, $2,300
Beginning cash balance, $20,300
Required
1. Prepare the statement of cash flows.
WARRICK COMPANY Statement of Cash Flows For Year Ended December 31, 2016 Operating Activities: Net income $ Adjustment for noncash income items: Add: Depreciation expense Add: Amortization of discount on bonds payable Add: Accumulated depreciation Less: Gain on sale of land Adjustments for cash flow effects
from working capital items: Increase in accounts receivable Decrease in inventory Increase in accounts payable Decrease in salaries payable Net cash provided by operating activities $ Investing Activities: Payment for purchase of building $ Proceeds from sale of land Payment for purchase of long-term investments Net cash used for investing activities Financing Activities: Proceeds from issuance of common stock $ Payment of accounts payable Proceeds from issuance of note Net cash provided by financing activities Net Decrease in Cash $ Cash, January 1, 2016 Cash, December 31, 2016 $ Investing and Financing Activities Not Affecting Cash Investing Activities: Acquisition of equipment under capital lease $ Financing Activities: Incurrence of capital lease obligation for equipment
Statement of Cash Flows
The following is a list of the items to be included in thepreparation of Warrick Company's 2016 statement of cash flows:
Net income, $59,200
Payment for purchase of building, $98,000
Increase in accounts receivable, $7,400
Proceeds from issuance of common stock, $37,100
Increase in accounts payable, $4,500
Proceeds from sale of land, $7,000
Depreciation expense, $12,600
Payment of dividends, $36,000
Gain on sale of land, $5,300
Decrease in inventory, $3,700
Payment for purchase of long-term investments, $9,600
Amortization of discount on bonds payable, $1,900
Proceeds from issuance of note, $18,000
Increase in deferred taxes payable, $5,000
Equipment acquired by capital lease, $19,500
Decrease in salaries payable, $2,300
Beginning cash balance, $20,300
Required
1. Prepare the statement of cash flows.
| WARRICK COMPANY | ||
| Statement of Cash Flows | ||
| For Year Ended December 31, 2016 | ||
| Operating Activities: | ||
| Net income | $ | |
| Adjustment for noncash income items: | ||
| Add: Depreciation expense | ||
| Add: Amortization of discount on bonds payable | ||
| Add: Accumulated depreciation | ||
| Less: Gain on sale of land | ||
| Adjustments for cash flow effects from working capital items: | ||
| Increase in accounts receivable | ||
| Decrease in inventory | ||
| Increase in accounts payable | ||
| Decrease in salaries payable | ||
| Net cash provided by operating activities | $ | |
| Investing Activities: | ||
| Payment for purchase of building | $ | |
| Proceeds from sale of land | ||
| Payment for purchase of long-term investments | ||
| Net cash used for investing activities | ||
| Financing Activities: | ||
| Proceeds from issuance of common stock | $ | |
| Payment of accounts payable | ||
| Proceeds from issuance of note | ||
| Net cash provided by financing activities | ||
| Net Decrease in Cash | $ | |
| Cash, January 1, 2016 | ||
| Cash, December 31, 2016 | $ | |
| Investing and Financing Activities Not Affecting Cash | ||
| Investing Activities: | ||
| Acquisition of equipment under capital lease | $ | |
| Financing Activities: | ||
| Incurrence of capital lease obligation for equipment | ||
Related questions
Trafalgar Industries, Inc. is a manufacturer of steel products for customers such as Home Depot, Loweâs, Chrysler, Ford, and General Motors. In the year ended December 31, 2013, it reported the following activities:
| Net income (loss) | $ | (6,533 | ) |
| Purchase of equipment | 14,040 | ||
| Payments on notes payable to bank | 207,469 | ||
| Net proceeds from stock issuance | 762 | ||
| Depreciation | 26,150 | ||
| Proceeds from sale of equipment | 12,520 | ||
| Increase in accounts receivable | 1,970 | ||
| Proceeds from notes payable to bank | 212,100 | ||
| Required: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Based on this information, present the cash flows from the investing and financing activities sections of the cash flow statement. (Amounts to be deducted should be indicated by a minus sign.)
+ Depreciation Increase in Accounts Receivable Net Proceeds from Stock Issuance Other Financing Cash Outflows Payment of Dividends Payments on Notes Payable to Bank Proceeds from Notes Payable to Bank Proceeds from Sale of Equipment Purchase of Equipment The full content of this question did not transfer to your assignment. Please try again. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Exercise 12-7 Shown below are comparative balance sheets for IndigoCorporation.
Additional information:
Prepare a statement of cash flows for 2017 using the indirectmethod. (Show amounts that decrease cash flow witheither a - sign e.g. -45,000, or in parenthesis e.g.(45,000)).
IE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
is this right
