Additional Data:

 a$.$ Bought equipment for cash, $$48,900.$

b$.$ Paid $$14,700$ on the long$-$term note payable.

c$.$ Issued new shares of stock for $$38,050$ cash.

d$.$ Dividends of $$650$ were declared and paid.

e$.$ Other expenses all relate to wages.

f$.$ Accounts payable includes only inventory purchases made on credit.

 

 

Required:

Prepare the statement of cash flows using the indirect method for the year ended December $31,$ current year.

Note: List cash outflows as negative amounts.

Answer is complete but not entirely correct.

$\backslash$table$[[$SHARP SCREEN FILMIS, INCORPORATED$],[$Statement of Cash Flows$],[$For the Year Ended December $31,$ Current Year$],[$Cash flows from operating activities:$],[$Net income,$0,,$$$26,800.$

Sharp Screen Films, Incorporated, is developing its annual financial statements at December $31,$ current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows:

Additional Data:

a$.$ Bought equipment for cash, $$48,900.$

b$.$ Paid $$14,700$ on the long$-$term note payable.

c$.$ Issued new shares of stock for $$38,050$ cash.

d$.$ Dividends of $$650$ were declared and paid.

e$.$ Other expenses all relate to wages.

f$.$ Accounts payable includes only inventory purchases made on credit.

 

 

Required:

Prepare the statement of cash flows using the indirect method for the year ended December $31,$ current year.

Note: List cash outflows as negative amounts.

$\backslash$table$[[$SHARP SCREEN FILMS, INCORPORATED$],[$Statement of Cash Flows$],[$For the Year Ended December $31,$ Current Year$],[$Cash flows from operating activities:$],[$Net income,,$$,26,800],[$Adjustments to reconcile net income to net cash provided by operating activities:$],[$Depreciation expense,$$,11,700,,],[$Decrease in accounts receivable,$6,100,,],[$Increase in merchandise inventory,$(5,450),,],[$Decrease in accounts payable,$(14,000),,]]$

Answer rating: 100% (QA)

Based on the additional data provided heres the impact of each transaction on the accounting equation a Bought equipment for cash 48900 This transaction decreases cash asset and increases equipment as... View the full answer