1. Using the data from P 13-46, prepare a statement of cash flows. Use the indirect method...
Question:
1. Using the data from P 13-46, prepare a statement of cash flows. Use the indirect method to report cash flows from operating activities.
2. Interpretive Question: What are the main differences between a statement of cash flows prepared using the indirect method and one prepared using the directmethod?
Transcribed Image Text:
Bankhead, Inc. Income and Retained Earnings Statements For the Year Ended December 31, 2012 Sales revenue Cost of goods sold. Gross margin. Operating expenses: Sales and administrative expenses. Depreciation expense Other expenses Total operating expenses. Income before taxes. $1.450 1,030 $ 420 S 110 17 81 $ 208 $ 212 Income taxes. 53 Net income Dividends paid Increase in retained earnings. $ 159 25 Ş 134 Bankhead, Inc. Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets S 783 Cash and cash equivalents Accounts receivable (net $ 612 448 456 Inventory Land. Store fixtures Accumulated depreciation, store fixtures Total assets. 245 980 1,450 255 (72) $3,117 1,300 255 (55) $3,540 Liabilities and Stockholders' Equity Liabilites: $ 170 574 Accounts payable Shortterm notes payable Long-term debt. . Total liabilities Stockholders' equity: Common stock. Paidin capital in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 366 735 1,024 $2,125 824 $1,568 $ 145 S 145 550 550 854 720 S1,549 $3,117 $1.415 S3,540
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 78% (14 reviews)
1 Bankhead Inc Statement of Cash Flows Indirect Method For the Year Ended December 31 2012 Dollars in Thousands Operating activities Net income 159 Ad...View the full answer
Answered By
Fahmin Arakkal
Tutoring and Contributing expert question and answers to teachers and students.
Primarily oversees the Heat and Mass Transfer contents presented on websites and blogs.
Responsible for Creating, Editing, Updating all contents related Chemical Engineering in
latex language
4.40+
8+ Reviews
22+ Question Solved
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Question Posted:
Students also viewed these Managerial Accounting questions
-
Prepare a statement of cash flows for Abrahams Manufacturing Company for the year ended December 31, 2012. Interpret your results. Abrahams Manufacturing Company Income Statement for the Year Ended...
-
Prepare a statement of cash flows in accordance with IAS 7 using the information in Question 32.9. There was no investment income or interest paid during the year ended 31 March 20X3. J. White...
-
Prepare a statement of cash flows for Mylady Ltd.
-
Find the maximum value of (x, y, z) = x a y b z c for x, y, z 0 on the unit sphere, where a, b, c > 0 are constants.
-
Aldor Corporation opened a new store on January 1, 2014. During 2014, the fi rst year of operations, the following purchases and sales of inventory were made: Instructions (a) Calculate the cost of...
-
Your knowledge of algorithms helps you obtain an exciting job with the Acme Computer Company, along with a $10,000 signing bonus. You decide to invest this money with the goal of maximizing your...
-
The A-36 steel bars are pin connected at \(B\). If each has a square cross section, determine the vertical displacement of \(B\). 800 lb A B D 8 ft 4 ft 10 ft 2 in. H I2 I 2 in.
-
Kabana Company, a manufacturer of stereo systems, started its production in October 2012. For the preceding 3 years Kabana had been a retailer of stereo systems. After a thorough survey of stereo...
-
What role can technology play in conflict resolution, and what are the most promising technological innovations that can enhance or streamline the conflict resolution process?
-
On January 11, 2019, Glassiere Co. sold a Model 3146 home theatre equipment cabinet to the HLJ Company on invoice No. 3275. The unit has a list price of $3,800, and this customer receives a trade...
-
Financial statement data for Bankhead, Inc., are provided. (All numbers are shown rounded to the nearest thousand, with 000's omitted.) Required: 1. Compute the net cash flows from operations using...
-
Jonathan Beecher is the manager and one of three brothers who own the Mile High Sporting Goods Company in Denver, Colorado. Jonathan is pleased that sales were up last year and that his new, small...
-
Find the standard matrix of the linear transformation in the given exercise. Data From Exercise 5 +z 2 + 32]
-
What are the different types of relationships employed in a use-case diagram, and what are their purpose?
-
What is user-centered development and why is it critical to the success of the system development process?
-
Why are logical models valuable tools for systems analysts?
-
Of the four primary categories of actors, who is the primary system actor?
-
Do you think people are always absolutely truthful in their responses to interview questions?
-
A company uses activity-based costing to determine the costs of its two products: A and B. The budgeted cost and activity for each of the companys three activity cost pools follow. The activity rate...
-
We all experience emotions, but some people disguise their true feelings better than others. Do you think this is a helpful or harmful thing to do? Under what conditions do you think it would be most...
-
Use the Limit Comparison Test to prove convergence or divergence of the infinite series. n=2 n n + 1
-
Should the costs be historical (embedded) costs or new (marginal) costs? MINI CASE During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many...
-
What is the market interest rate on Harry Davis debt and its component cost of debt? MINI CASE During the last few years, Harry Davis Industries has been too constrained by the high cost of capital...
-
Should flotation costs be included in the estimate? MINI CASE During the last few years, Harry Davis Industries has been too constrained by the high cost of capital to make many capital investments....
-
Consider SELECT statements listed below. SELECT L_PARTKEY, L_TAX, COUNT(*) FROM LINEITEM GROUP BY L PARTKEY, L_TAX; SELECT O TOTALPRICE, COUNT(*) FROM ORDERS GROUP BY O TOTALPRICE; SELECT L_TAX,...
-
How do cognitive biases, such as confirmation bias and anchoring, impact decision-making during conflict resolution, and what strategies can be employed to mitigate their effects and promote more...
-
Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January. January 1...
Study smarter with the SolutionInn App