ACCO 310 Study Guide - Cash Flow Statement, Cash Cash, Cash Flow
Document Summary
Get access
Related Documents
Related Questions
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2014 and 2013, is shown as follows:
Dec. 31, 2014 | Dec. 31, 2013 | ||||
Assets | |||||
Cash | $246,880 | $232,300 | |||
Accounts receivable (net) | 89,440 | 83,430 | |||
Inventories | 252,460 | 247,030 | |||
Investments | 0 | 95,700 | |||
Land | 129,500 | 0 | |||
Equipment | 278,560 | 218,400 | |||
Accumulated depreciation-equipment | (65,210) | (58,890) | |||
Total | $931,630 | $817,970 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $168,630 | $161,140 | |||
Accrued expenses payable (operating expenses) | 16,770 | 21,270 | |||
Dividends payable | 9,320 | 7,360 | |||
Common stock, $10 par | 50,310 | 40,080 | |||
Paid-in capital in excess of par-common stock | 189,120 | 111,240 | |||
Retained earnings | 497,480 | 476,880 | |||
Total | $931,630 | $817,970 |
The following additional information was taken from the records:
The investments were sold for $111,970 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $59,040 credit to Retained Earnings for net income.
There was a $38,440 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 and for any adjustments, if required.
|
Statement of Cash Flows—Indirect Method
The comparative balance sheet of Livers Inc. for December 31,20Y3 and 20Y2, is shown as follows:
Dec. 31, 20Y3 | Dec. 31, 20Y2 | ||||
Assets | |||||
Cash | $256,770 | $237,750 | |||
Accounts receivable (net) | 93,020 | 85,390 | |||
Inventories | 262,580 | 252,830 | |||
Investments | 0 | 97,950 | |||
Land | 134,680 | 0 | |||
Equipment | 289,710 | 223,520 | |||
Accumulated depreciation—equipment | (67,830) | (60,280) | |||
Total assets | $968,930 | $837,160 | |||
Liabilities and Stockholders'Equity | |||||
Accounts payable (merchandise creditors) | $175,380 | $164,920 | |||
Accrued expenses payable (operating expenses) | 17,440 | 21,770 | |||
Dividends payable | 9,690 | 7,530 | |||
Common stock, $10 par | 52,320 | 41,020 | |||
Paid-in capital: Excess of issue price overpar-common stock | 196,690 | 113,850 | |||
Retained earnings | 517,410 | 488,070 | |||
Total liabilities and stockholders’ equity | $968,930 | $837,160 |
Additional data obtained from an examination of the accounts inthe ledger for 20Y3 are as follows:
The investments were sold for $114,600 cash.
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The common stock was issued for cash.
There was a $68,690 credit to Retained Earnings for netincome.
There was a $39,350 debit to Retained Earnings for cashdividends declared.
Required:
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash out flows, cash payments, decreases in cash, orany negative adjustments.
LiversInc. | ||
Statement ofCash Flows | ||
For the YearEnded December 31, 20Y3 | ||
Cash flows from operating activities: | ||
$ | ||
Adjustments to reconcile net income to netcash flow from operating activities: | ||
Changes in current operating assets andliabilities: | ||
Net cash flow from operatingactivities | $ | |
Cash flows from investing activities: | ||
$ | ||
Net cash flow used for investingactivities | ||
Cash flows from financing activities: | ||
$ | ||
Net cash flow from financingactivities | ||
$ | ||
Cash at the beginning of the year | ||
Cash at the end of the year | $ |