Heads Up Company was started several years ago by two hockey instructors. The company?s 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 appear on the next page, along with additional information.

image

Additional notes:

a. Bought new hockey equipment for cash, $500

b. Borrowed $1,000 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, 2017, using the indirect method.

2. Use the statement of cash flows to evaluate the company?s cash flows.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-1259269868

5th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

Question Posted: