To prepare the statement of cash flows, accountants for Powers Art Gallery, Inc., have summarized 20X6 activity
Question:
To prepare the statement of cash flows, accountants for Powers Art Gallery, Inc., have summarized 20X6 activity in 2 accounts as follows:
Required
Prepare Powers' statement of cash flows for the year ended December 31, 20X6, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. Powers' 20X6 income statement and selected balance sheet data follow. (pp. 641-644)
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Cash Beginning balance Issuance of common stock Receipts of dividends Collection of loan Sale of long-term investments Receipts of inte Collecti ons from customers Sale of treasury stock 87,100 Payments of operating expenses 34,600 Payment of long-term note payable 1,900 Purchase of treasury stock 18,500 Payment of income tax 9,900 Payments on accounts payable 12,200 Payments of dividends 46,100 78,900 10,400 8,000 101,600 1,800 67,500 21,800 79,900 rest 308,100 Payments of salaries and wages Payments of interest 26,200 Purchase of equipment Ending balance 82,500 Common Stock Beginning balance Issuance for cash Issua nce to acquire land Issuance to retire long-term note payable Ending balance 103,500 34,600 62,100 21,100 221,300 Powers Art Gallery, Inc. Income Statement Year Ended December 31, 20X6 Revenues and gains: Sales revenue Interest revenue Dividend revenue Gain on sale of investments $291,800 12,200 1,900 700 306,600 Total revenues and gains.. Expenses: Cost of goods sold Salary and wage expense Depreciation expense Other operating expense Interest expense Income tax expense $103,600 66,800 20,900 44,700 24,100 2,600 Total expenses 262,700 $ 43,900 Net income Power Art Gallery, Inc. Selected Balance Sheet Data 20X6 Increase Current a ssets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses $ (4,600) (16,300) 5,700 (1,900) (18,500) (9,200) 59,000 62,100 Loan receivable Long-term investments Equipment, net Land Current liabilities: $ 7,700 2,300 (700) (3,300) (5,400) (100,000) 117,800 42,100 15,800 Accounts payable Interest payable Salary payable Income tax payable Long-term note payable...(1 Common stock Retained earnings Treasury stock
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Related Book For
Financial Accounting
ISBN: 978-0135012840
7th edition
Authors: Walter T. Harrison, Charles T. Horngren
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