Ryan Companys bookkeeper prepared the following 2019 statement of cash flows: After a thorough investigation, you have
Question:
Ryan Company’s bookkeeper prepared the following 2019 statement of cash flows:
After a thorough investigation, you have determined that the amounts of the items listed on the statement are correct. However, you notice several items that are incorrectly classified and reported.
Required:
Prepare a corrected 2019 statement of cash flows for Ryan.
Transcribed Image Text:
Flows of Cash Statement December 31, 2019 Sources (Inflows) of Cash Net Source from Operations $ 47,800 6,500 25,000 13,200 1,900 (16,400) (700) (9,500) (2,000) Net income Add: Cash receipt from sale of land Inflow from issuing 10% bonds payable Depreciation expense Reduction in inventory Less: Outflow to buy equipment Increase in prepaid expenses Cash (principal) paid on long-term note ordinary gain Total source from operations Other Sources (Inflows) of Cash Loss on sale of land Increase in accounts payable Cash from issuing preferred stock Patent amortization expense Total other sources of cash Sources (Financing) Not Affecting Cash Issuance of common stock for patent Total inflows of cash $ 65,800 $ 2,300 1,000 38,700 2,100 44,100 11,000 $120,900 Uses (Outflows) of Cash To purchase building Increase in accounts receivable $(62,000) (7,800) (7,100) (1,400) For acquiring marketable securities Decrease in income taxes payable Total uses of cash (78,300) Uses (Investing) Not Affecting Cash Acquisition of patent by issuing common stock Net inflow before dividends (11,000) $ 31,600 (24,000) $ 7,600 15,300 $ 22,900 Less: Cash dividends Net Increase in Cash Cash, January 1, 2019 Cash, December 31, 2019
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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