The income statement and comparative balance sheets for Armstrong Inc. are shown below. The statement of...
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The income statement and comparative balance sheets for Armstrong Inc. are shown below. The statement of retained earnings (not shown) indicates that Armstrong paid $105,000 in cash dividends during the year. The company uses the indirect method for preparing the statement of cash flows. Use the information provided in these financial statements to construct Armstrong's statement of cash flows. Complete the statement by entering the appropriate value. Note: Be sure to enter a negative sign for those values that represent a cash outflow. It is not necessary to enter a positive sign for a cash flow representing an inflow. Armstrong Inc. Income Statement For the Year Ending December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating profit (EBIT) Interest expense Earnings before taxes Taxes Net income $30,870 249,130 148,750 87,500 $1,750,000 1,058,750 $691,250 280,000 $411,250 $262,500 $175,000 Armstrong Inc. Total assets Balance Sheet As of December 31, Year 2 Year 2 Year 1 Assets Cash Accounts receivable (net) Inventories Property & equipment Accumulated depreciation Liabilities Accounts payable Accrued wages payable Accrued taxes payable Bonds outstanding Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and equity $47,200 $20,500 65,000 56,000 167,800 148,500 344,570 308,700 64,570 33,700 $560,000 $500,000 $72,800 $45,000 22,400 18,750 18,200 10,000 82,600 126,250 $196,000 $200,000 $55,250 $61,250 308,750 238,750 $364,000 $300,000 $560,000 $500,000 Increase Decrease $26,700 9,000 19,300 35,870 30,870 $60,000 $27,800 3,650 8,200 -43,650 $-4,000 $-6,000 70,000 $64,000 $60,000 Cash flows from operating activities: Net income Adjustments: Depreciation Changes in current operating assets and liabilities: in accounts receivable in inventory in accounts payable in accrued wages payable in accrued taxes payable Net cash flow from operating activities Cash flows from investing activities: Cash from the of property & equipment Net cash flow from investing activities Cash flows from financing activities: Cash associated with Cash associated with Cash from the Net cash flow from financing activities Change in cash Cash at the beginning of the year Cash at the end of the year common stock outstanding bonds of dividends Armstrong Inc. Statement of Cash Flows For the Year Ended December 31, Year 2 $ -$35,870 -43,650 -9,000 8,200 20,500 Grade It Now Save & Continue Continue without savi The income statement and comparative balance sheets for Armstrong Inc. are shown below. The statement of retained earnings (not shown) indicates that Armstrong paid $105,000 in cash dividends during the year. The company uses the indirect method for preparing the statement of cash flows. Use the information provided in these financial statements to construct Armstrong's statement of cash flows. Complete the statement by entering the appropriate value. Note: Be sure to enter a negative sign for those values that represent a cash outflow. It is not necessary to enter a positive sign for a cash flow representing an inflow. Armstrong Inc. Income Statement For the Year Ending December 31, Year 2 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating profit (EBIT) Interest expense Earnings before taxes Taxes Net income $30,870 249,130 148,750 87,500 $1,750,000 1,058,750 $691,250 280,000 $411,250 $262,500 $175,000 Armstrong Inc. Total assets Balance Sheet As of December 31, Year 2 Year 2 Year 1 Assets Cash Accounts receivable (net) Inventories Property & equipment Accumulated depreciation Liabilities Accounts payable Accrued wages payable Accrued taxes payable Bonds outstanding Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and equity $47,200 $20,500 65,000 56,000 167,800 148,500 344,570 308,700 64,570 33,700 $560,000 $500,000 $72,800 $45,000 22,400 18,750 18,200 10,000 82,600 126,250 $196,000 $200,000 $55,250 $61,250 308,750 238,750 $364,000 $300,000 $560,000 $500,000 Increase Decrease $26,700 9,000 19,300 35,870 30,870 $60,000 $27,800 3,650 8,200 -43,650 $-4,000 $-6,000 70,000 $64,000 $60,000 Cash flows from operating activities: Net income Adjustments: Depreciation Changes in current operating assets and liabilities: in accounts receivable in inventory in accounts payable in accrued wages payable in accrued taxes payable Net cash flow from operating activities Cash flows from investing activities: Cash from the of property & equipment Net cash flow from investing activities Cash flows from financing activities: Cash associated with Cash associated with Cash from the Net cash flow from financing activities Change in cash Cash at the beginning of the year Cash at the end of the year common stock outstanding bonds of dividends Armstrong Inc. Statement of Cash Flows For the Year Ended December 31, Year 2 $ -$35,870 -43,650 -9,000 8,200 20,500 Grade It Now Save & Continue Continue without savi
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Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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