Question: Answer this question and please explain everything how we got it How we should know if it's gain or loss Question 6 -L06 (Cash Flow

Answer this question
and please explain everything how we got it
How we should know if it's gain or loss
Answer this question and please explain everything how we got it How

Question 6 -L06 (Cash Flow Statement) Given below are the financial statements for Computer Services Company for the years 2014 & 2015 with additional information (000 omitted) 2015 Balance Sheets os on December 31 2014 Assets Cash 2,784 Accounts Receivable 1,775 Inventories 1.988 Prepaid Expenses 1.135 Equipment 13,000 Accumulated Depreciation - Equipment 13.520) TOTAL ASSETS 17,162 3,084 1,574 2.480 1,012 16,400 14,760 19,790 Liabilities & Shareholders' Equity Accounts Payable Loan Common Stock Retained Earnings TOTAL LIABILITIES & SH. EQUITY 718 2.976 11,600 1,868 17,162 1,228 3,172 12,392 2.998 19,790 Income statement for the year ended 31 December 2015 Total Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Administrative expenses Net Income 10.268 15.5021 4,766 (3,216) 1.550 Additional Information: During the year 2015, 1. Equipment with an original cost of $400 and accumulated depreciation of $124 were sold for $168 giving a loss of $108. This loss is included in the administrative expenses. The company also purchased some other equipment of $3,800 cash during the year. 2. The depreciation charge is also included in the administrative expenses amount in the Income Statement of $1,364. 3. Dividends were paid during the year of $420. 4. The company borrowed bank loan of $ 196 and received it in cash. 5. Issued common stock for $792 cash. Required Using Indirect Method Prepare Cash Flow Statement for the year ended December 31, 2015

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!