Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets

Question:

Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance sheets and income statement follow, along with additional information.


Heads Up Company was started several years ago by two


Additional Data:
a. Bought new hockey equipment for cash, $500.
b. Borrowed $1,200 cash from the bank during the year.
c. Accounts Payable includes only purchases of services made on credit for operating purposes.
Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash.

Required:
1. Prepare the statement of cash flows for the year ended December 31, 2013, using the indirect method.
2. Use the statement of cash flows to evaluate the company’s cashflows.

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Related Book For  answer-question

Managerial Accounting

ISBN: 978-0078025518

2nd edition

Authors: Stacey Whitecotton, Robert Libby, Fred Phillips

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