XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are complete
Question:
Additional Data:
a. Bought equipment for cash. $31,000.
Sold equipment with original cost of $10,000, accumulated depreciation of $7,000, for $4,000 cash.
b. Paid $6,000 on the long-term note payable.
c. Issued new shares of stock for $16,000 cash.
d. No dividends were declared or paid.
e. Other expenses included depreciation, $12,000; wages, SI 3,000; taxes, S6,000; and other, $7.800.
f Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
Required:1. Prepare the statement of cash flows for the year ended December 31, 2014, using the indirect method.
2. Evaluate the statement of cashflows.
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short