Financial statement data for Metro Moving Company for 2016 follow. Additional information: 1. Vehicles that cost $65,000
Question:
Financial statement data for Metro Moving Company for 2016 follow.
Additional information:
1. Vehicles that cost $65,000 and had a net carrying amount of $10,000 were sold for $14,000.
2. A cash payment was made to reduce the bank loan.
3. Dividends were declared and paid during the year.
Required:
a. Prepare a statement of cash flows for Metro Moving Company for the year ended December 31, 2016, using the indirect method.
b. Determine the cash flows from operating activities using the direct method.
Transcribed Image Text:
METRO MOVING COMPANY Comparative Statement of Financial Position 31, 2016 Dec. 31, 2015 Assets $68,600 95,000 30,000 193,600 400,000 (110,400) 289,600 483,200 S 49,100 59.400 20,000 128,500 345,000 (105,900) 239,100 $367,600 Cash Accounts receivable Prepaid insurance Total current assets Property, equipment, and vehicles Accumulated depreciation Total non-current assets Total assets Liabilities and shareholders equity S 18,600 4,000 22,600 60,000 82,600 200,000 85,000 285,000 $ 367,600 Accounts payable Wages payable 21,500 3,000 24,500 50,000 74,500 200,000 208,700 408,700 $ 483,200 Total current liabilities Bank loan Total liabilities Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity METRO MOVING COMPANY Statement of Income For the year ended December 31, 2016 Moving revenue Gain on sale of vehicles $450,000 4,000 454,000 Expenses Vehicle operating expenses Wages expense Depreciation expense Interest expense $102,400 134,000 59,500 5,400 Total expenses 301,300 152,700 Net income
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Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
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