n Parts 1 thru 6b Any answer box highlighted in yellow will turn green with a correct

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Parts 1 thru 6b Any answer box highlighted in yellow will turn green with a correct answer 1 Blue boxes have drop down menu's to choose from P & B Manufacturing Statement of Cash Flows (indirect method) For the Year Ended December 31 Operating Activities: Net Income (starting point) Adjustments to convert net income to cash basis: Depreciation Gain on sales of equipment Change in accounts receivable Increase in inventory Change in accrued liabilities Change in income taxes payable Subtotal of Adjustments Net cash provided by operating activities Investing Activities: Proceeds from sale of equipment Additions to property, plant & equipment Net cash used in investing activities Financing Activities: Retirement of bonds payable Cash dividends Net cash used in financing activities Decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents 103 124 3 65 45 25 6 268 371 3 75 78 170 49 219 0 P & B Manufacturing Comparative Balance Sheet (dollars in millions) ASSETS Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant and equipment Less: accumulated depreciation Net property, pland and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity P & B Manufacturing Income Statement For Year Ended Decemer 31 (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Non operating items: Gain on sales of equipment Income before taxes Income taxes Net income $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,600 $ 2,550 1,050 895 155 $ $ $ Ending Balance $ $ $ $ 3 158 55 103 49 $ 645 $ 660 $ 1,354 $ 1.515 $ 765 $ 750 $ 2,104 $ 250 $ 190 $ 76 $ 516 $ 450 $ 966 $ 161 $ 977 $ 1,138 $ 2,104 $ Beginning Balance 79 580 615 1,274 1,466 641 825 2,099 155 165 70 390 620 1,010 161 928 1,089 2,099 Parts 1 thru 6b Any answer box highlighted in yellow will turn green with a correct answer 1 Blue boxes have drop down menu's to choose from P & B Manufacturing Statement of Cash Flows (indirect method) For the Year Ended December 31 Operating Activities: Net Income (starting point) Adjustments to convert net income to cash basis: Depreciation Gain on sales of equipment Change in accounts receivable Increase in inventory Change in accrued liabilities Change in income taxes payable Subtotal of Adjustments Net cash provided by operating activities Investing Activities: Proceeds from sale of equipment Additions to property, plant & equipment Net cash used in investing activities Financing Activities: Retirement of bonds payable Cash dividends Net cash used in financing activities Decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents 103 124 3 65 45 25 6 268 371 3 75 78 170 49 219 0 P & B Manufacturing Comparative Balance Sheet (dollars in millions) ASSETS Current assets: Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant and equipment Less: accumulated depreciation Net property, pland and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity P & B Manufacturing Income Statement For Year Ended Decemer 31 (dollars in millions) Sales Cost of goods sold Gross margin Selling and administrative expense Net operating income Non operating items: Gain on sales of equipment Income before taxes Income taxes Net income $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3,600 $ 2,550 1,050 895 155 $ $ $ Ending Balance $ $ $ $ 3 158 55 103 49 $ 645 $ 660 $ 1,354 $ 1.515 $ 765 $ 750 $ 2,104 $ 250 $ 190 $ 76 $ 516 $ 450 $ 966 $ 161 $ 977 $ 1,138 $ 2,104 $ Beginning Balance 79 580 615 1,274 1,466 641 825 2,099 155 165 70 390 620 1,010 161 928 1,089 2,099

Answer rating: 100% (QA)

Heres the Statement of Cash Flows prepared using the indirect method PB Manufacturing Statement of C... View the full answer