Use the following excerpts from Stern Companys financial information to prepare a statement of cash flows (indirect
Question:
Use the following excerpts from Stern Company’s financial information to prepare a statement of cash flows (indirect method) for the year 2018.
Cash Account Receivable Merchandise Inventory Plant Assets Accumulated Depreciation Total Assets Accounts Payable Notes Payable Common Stock Retained Earnings Total Liabilities and Equity Additional information: Net income for 2018 Depreciation expense for 2018 (accumulated depreciation increase) Plant assets purchased (plant assets increase), financed by note Notes payable increased by amount of plant asset purchase Notes payable decreased by amount of principal note payments Dec. 31, 2018 $121,000 37,200 120,000 304,000 (85,000) 497,200 23,200 179,500 30,000 264,500 497,200 3,400 21,000 50,000 50,000 14,500 Dec. 31, 2017 $101,000 35,300 128,700 254,000 (64,000) 455,000 19,900 144,000 30,000 261,100 455,000
Step by Step Answer:
Statement of Cash Flows Indirect Method For the year ended December 31 2018 Cash flows from operatin...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
To prepare a statement of cash flows for Golf Champion Store, you examined the companys accounts, noting the following: Purchased equipment, $20,000, and issued a promissory note in full payment....
-
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...
-
Use the following information to prepare a statement of cash flows for the year ended March 31, 2014, using the indirectmethod. Parker Consulting Comparative Balance Sheet Informationn Parker...
-
A 0.500-kg block, attached to a spring with length 0.60 m and force constant 40.0 N/m, is at rest with the back of the block at point A on a frictionless, horizontal air table (Fig. 7.44). The mass...
-
Which of the four skills in Exercise 7-2 would be most important for Wallys replacement?
-
In January 2019, Sonja deposited $20,000 in a bank in the Bahamas. She earned $500 interest income. She closed the account in December 2019. a. Is Sonja subject to the FBAR reporting requirement?...
-
The probability distribution function, \(P(\widetilde{x})\), denotes a. \(P(x \leq \tilde{x})\) b. \(P(x>\widetilde{x})\) c. \(P(\tilde{x} \leq x \leq \tilde{x}+\Delta x)\)
-
Issa Manufacturing Company was started on January 1, 2014, when it acquired $78,000 cash by issuing common stock. Issa immediately purchased office furniture and manufacturing equipment costing...
-
Daisy Corp. has identified circumstances that warrant impairment testing on an intangible asset. Information on this asset is provided below: Trademark cost $3,200,000 Trademark accumulated...
-
The adjusted trial balance of Sylvias Music Company at June 30, 2024, follows: Requirements 1. Prepare Sylvias multi-step income statement for the year ended June 30, 2024. 2. Journalize Sylvias...
-
Use the following information from Denmark Companys financial statements to determine operating net cash flows (indirect method). Net income Depreciation Loss on sale of land Decrease in accounts...
-
Use the following information from Kentucky Companys financial statements to determine operating net cash flows (indirect method). Net income Depreciation expense Gain on sale of plant assets...
-
AutoZone, Inc. claims to be the nations leading auto parts retailer. It sells replacement auto parts directly to the consumer. BorgWarner, Inc. has over 30,000 employees and produces automobile...
-
Corporation W had earning & profits (E&P) of $95,000 on December 31, Year 1. Based on the following information, compute total E&P as of December 31, Year 2. Taxable income $185,000 Contributions in...
-
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: 1. Received $42,500 cash from the issue of a short-term note with a 6 percent interest rate and a...
-
Blossom Corporation had the following transactions. 1. Sold land (cost $11,800) for $14,800. 2. Issued common stock at par for $20,000. 3. Recorded depreciation on buildings for $16,800. 4. Paid...
-
The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash Noncash assets $ 71,520 132,000 Liabilities 48,000 Delphine, capital Xavier, capital Olivier, capital 60,960 56,000...
-
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%....
-
In this problem, use Ampre's law to show that the magnetic field inside a long solenoid is B = 0nI. Assume that the field inside the solenoid is uniform and parallel to the axis and that the field...
-
What is a content filter? Where is it placed in the network to gain the best result for the organization?
-
Identify task groups used in an organization you work for or have worked for. Specify whether each group is a task force or a standing committee.
-
Give examples of team rewards and recognition where you work(ed).
-
Which are usually larger, groups or teams?
-
Mercury Company has only one inventory pool. On December 31, 2024, Mercury adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO method was $201,000....
-
Arizona Corporation acquired the business Data Systems for $315,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $330,000, liabilities of $18,000,...
-
Define and describe the concepts of IMC (Integrated Marketing Communications) and RTM (real time marketing). How does this relate to the discussion in the textbook of time compression and online vs....
Study smarter with the SolutionInn App