1. Using the information from Problem 16-4A, prepare a statement of cash flows for Rucker Photography Products...

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1. Using the information from Problem 16-4A, prepare a statement of cash flows for Rucker Photography Products Inc. using the direct method of presenting cash flows from operating activities.

2. How does Rucker's cash flow compare to its net income? Summarize the changes that caused the difference.

In Problem 16-4A

The statement of financial position of Rucker Photography Products Inc. for December 31, 2016 and 2015 is as follows:

Dec. 31, 2016 Dec. 31, 2015 Assets $ 321,700 $ 339,700 Cash. Accounts receivable (net) Inventories. 283,400 273,700 505,

The statement of income for the year ended December 31, 2016, is as follows:

Sales Cost of goods sold $2,990.000 1,226,000 Gross profit .. Operating expenses: Depreciation expense Other operating e

The following additional information was taken from the records:
a. Equipment and land were acquired for cash.
b. There were no disposals of equipment during the year.
c. The investments were sold for $88,000 cash.
d. The common shares were issued for cash.
e. There was a $10,000 debit to Retained Earnings for cash dividends declared.
f. The income taxes expense was paid in cash.

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Related Book For  book-img-for-question

Accounting Volume 2

ISBN: 978-0176509743

2nd Canadian edition

Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren

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