A list of Fischer Company's cash flow activities is presented here: a. Patent amortization expense, $3,500...
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A list of Fischer Company's cash flow activities is presented here: a. Patent amortization expense, $3,500 b. Machinery was purchased for $39,500 c. At year-end, bonds payable with a face value of $20,000 were issued for $17,000 d. Net income, $47,200 e. Dividends paid, $16,000. f. Depreciation expense, $12,900 g. Preferred stock was issued for $13,600 h. Investments were acquired for $21,000 1. Accounts receivable increased by $4,300 J. Land was sold at cost, $11,000 k. Inventories increased by $15,400 1. Accounts payable increased by $2,700 m. Beginning cash balance, $19,400 Required: Using indirect method, prepare Fischer's statement of cash flows. For those boxes in which you must enter subtractive or negative numbers use a minus sign. FISCHER COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income Adjustments for differences between net income and cash flows from operating activities: Add Depreciation expense Add Patent amortization expense 47,200 12,900 ✓ 3,500 V Operating Activities: Net income Adjustments for differences between net income and cash flows from operating activities: Add: Depreciation expense Add: Patent amortization expense Add: Increase in accounts payable Less: Increase in accounts receivable Less: Increase in inventories Net cash provided by operating activities Investing Activities: Payment for purchase of machinery Payment for purchase of investments Receipt from sale of land Net cash used for investing activities Financing Activities: Payment of dividends Receipt from issuance of bonds Receipt from issuance of preferred stock Net cash provided by financing activities Net increase in cash. 47,200 12,900 3,500 2,700 -4,300 -15,400 -39,500 -21,000 11,000 17,000 X 16,000 X 13,600 46,600 -49,500 14,600✔ 11 700✔ LANGGARMAGSIIVELINOTIES Net cash provided by operating activities nvesting Activities: Payment for purchase of machinery Payment for purchase of investments Receipt from sale of land Net cash used for investing activities Financing Activities: Payment of dividends Receipt from issuance of bonds Receipt from issuance of preferred stock ✔ Net cash provided by financing activities Net increase in cash Print Rem Cash, January 1 - V Cash, December 31 Feedback MENIU -39,500 -21,000 11,000 17,000 X 16,000 X 13,600 46,600 ✔ -49,500 14,600 11,700 19,400 31,100 A list of Fischer Company's cash flow activities is presented here: a. Patent amortization expense, $3,500 b. Machinery was purchased for $39,500 c. At year-end, bonds payable with a face value of $20,000 were issued for $17,000 d. Net income, $47,200 e. Dividends paid, $16,000. f. Depreciation expense, $12,900 g. Preferred stock was issued for $13,600 h. Investments were acquired for $21,000 1. Accounts receivable increased by $4,300 J. Land was sold at cost, $11,000 k. Inventories increased by $15,400 1. Accounts payable increased by $2,700 m. Beginning cash balance, $19,400 Required: Using indirect method, prepare Fischer's statement of cash flows. For those boxes in which you must enter subtractive or negative numbers use a minus sign. FISCHER COMPANY Statement of Cash Flows For Year Ended December 31, 2019 Operating Activities: Net income Adjustments for differences between net income and cash flows from operating activities: Add Depreciation expense Add Patent amortization expense 47,200 12,900 ✓ 3,500 V Operating Activities: Net income Adjustments for differences between net income and cash flows from operating activities: Add: Depreciation expense Add: Patent amortization expense Add: Increase in accounts payable Less: Increase in accounts receivable Less: Increase in inventories Net cash provided by operating activities Investing Activities: Payment for purchase of machinery Payment for purchase of investments Receipt from sale of land Net cash used for investing activities Financing Activities: Payment of dividends Receipt from issuance of bonds Receipt from issuance of preferred stock Net cash provided by financing activities Net increase in cash. 47,200 12,900 3,500 2,700 -4,300 -15,400 -39,500 -21,000 11,000 17,000 X 16,000 X 13,600 46,600 -49,500 14,600✔ 11 700✔ LANGGARMAGSIIVELINOTIES Net cash provided by operating activities nvesting Activities: Payment for purchase of machinery Payment for purchase of investments Receipt from sale of land Net cash used for investing activities Financing Activities: Payment of dividends Receipt from issuance of bonds Receipt from issuance of preferred stock ✔ Net cash provided by financing activities Net increase in cash Print Rem Cash, January 1 - V Cash, December 31 Feedback MENIU -39,500 -21,000 11,000 17,000 X 16,000 X 13,600 46,600 ✔ -49,500 14,600 11,700 19,400 31,100
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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