Galley Corp., a merchandiser, recently completed its 2011 operations. For the year, (1) All sales are credit

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Galley Corp., a merchandiser, recently completed its 2011 operations. For the year,

(1) All sales are credit sales,

(2) All credits to Accounts Receivable reflect cash receipts from customers,

(3) All purchases of inventory are on credit,

(4) All debits to Accounts Payable reflect cash payments for inventory,

(5) Other Expenses are all cash expenses, and

(6) Any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.


Galley Corp., a merchandiser, recently completed its 2011 operat


Additional Information on Year 2011 Transactions
a. Purchased equipment for $36,000 cash.
b. Issued 12,000 shares of common stock for $5 cash per share.
c. Declared and paid $111,000 in cash dividends.

Required
Prepare a complete statement of cash flows; report its cash inflows and cash outflows from operating activities according to the indirectmethod.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  answer-question

Fundamental Accounting Principles

ISBN: 978-0078110870

20th Edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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