You have completed the field work in connection with your audit of Kinder Company for the...

 

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You have completed the field work in connection with your audit of Kinder Company for the year ended December 31, 2023. The balance sheet accounts at the beginning and end of the year are shown below. Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment Accumulated depreciation. 1. Accounts payable Accrued liabilities Long-term notes payable Common stock Retained earnings 2. Kinder Company Balance Sheet December 31 2021 $ 30,900 43,300 35,000 236,500 (37,700) $308.000 $ 17,000 21,000 70,000 130,000 70,000 $308.000 2020 $ 10,200 20,300 42,000 15,000 150,000 (25,000) $212.500 I Your working papers from the audit contain the following additional information: 1. Net income for the year 2023, $61,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $33,000 4. Paid dividends of $20,000. 5. Purchased machinery and gave a $60,000 long-term note payable. $ 26,500 17,000 50,000 90,000 29,000 $212.500 Instructions: Use the sheet of paper attached to the answer sheet Using the indirect method prepare the cash flow from operating activities section of the statement of cashflows. Prepare either the investing activities section or the financing activities section of the statement of cash flows. You have completed the field work in connection with your audit of Kinder Company for the year ended December 31, 2023. The balance sheet accounts at the beginning and end of the year are shown below. Cash Accounts receivable (net) Inventory Long-term investments Property, plant & equipment Accumulated depreciation. 1. Accounts payable Accrued liabilities Long-term notes payable Common stock Retained earnings 2. Kinder Company Balance Sheet December 31 2021 $ 30,900 43,300 35,000 236,500 (37,700) $308.000 $ 17,000 21,000 70,000 130,000 70,000 $308.000 2020 $ 10,200 20,300 42,000 15,000 150,000 (25,000) $212.500 I Your working papers from the audit contain the following additional information: 1. Net income for the year 2023, $61,000. 2. Depreciation on plant assets for the year, $12,700. 3. Sold the long-term investments for $33,000 4. Paid dividends of $20,000. 5. Purchased machinery and gave a $60,000 long-term note payable. $ 26,500 17,000 50,000 90,000 29,000 $212.500 Instructions: Use the sheet of paper attached to the answer sheet Using the indirect method prepare the cash flow from operating activities section of the statement of cashflows. Prepare either the investing activities section or the financing activities section of the statement of cash flows.

Answer rating: 100% (QA)

Cash Flow from Operating Activities Net Income 61000 Adjustments Depreciation Expense 12700 Decrease ... View the full answer