Triple Flip Inc., a sporting goods retailer, recently completed its 2023 operations. Triple Flip Inc.s balance sheet
Question:
Triple Flip Inc., a sporting goods retailer, recently completed its 2023 operations. Triple Flip Inc.’s balance sheet information and income statement follow.
Additional information regarding Triple Flip Inc.’s activities during 2023:1. Loss on sale of equipment is $2,058.2. Equipment costing $49,980 is sold for $27,489.3. Equipment is purchased by paying cash of $37,485 and signing a long-term note payable for the balance.4. Borrowed $5,880 by signing a short-term note payable.5. Reduced a long-term note payable by making a payment.6. Issued 2,940 common shares for cash at $11 per share.7. Declared and paid cash dividends.
RequiredPrepare a statement of cash flows for 2023 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations. Also prepare a note describing non-cash investing and financing activities.
Analysis Component:Using the information from the statement of cash flows just prepared for Triple Flip Inc., identify the accrual basis profit and the cash basis profit for 2023. Explain why there is a difference between the two amounts.
Step by Step Answer:
Fundamental Accounting Principles Volume 2
ISBN: 9781260881332
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris