At December 31 Assets Cash Accounts receivable, net Inventory Total current assets. Equipment Accumulated depreciation-Equipment Total...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At December 31 Assets Cash Accounts receivable, net Inventory Total current assets. Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities. Equity Common stock, no par value Retained earnings Total liabilities and equity MONTGOMERY INCORPORATED Comparative Balance Sheets MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 $ 83,500 (34,600) Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income 48,900 10,300 12,900 25,700 6,100 $ 19,600 Current Year $ 58,200 18,300 164,100 240,600 90,900 (41,000) $ 290,500 $ 43,600 900 44,500 202,500 43,500 $ 290,500 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16.800 cash. c. Purchased equipment for cash; no equipment was sold. Prior Year $ 58,100 22,300 128,800 209, 200 76,200 (28,100) $ 257,300 $ 46,600 1,100 47,700 185,700 23,900 $ 257,300 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash Depreciation expense Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salarles payable Net cash provided by operating activities Cash flows from investing activities Net cash provided by investing activities Cash flows from financing activities Cash received from stock issuance Cash balance at beginning of year Cash balance at end of year $ 19,600 12.900 4,000 (35,300) (3.000) (200) 16.800 $ $ $ $ $ (2,000) 0 16,800 14,800 58,100 72,900 At December 31 Assets Cash Accounts receivable, net Inventory Total current assets. Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Salaries payable Total current liabilities. Equity Common stock, no par value Retained earnings Total liabilities and equity MONTGOMERY INCORPORATED Comparative Balance Sheets MONTGOMERY INCORPORATED Income Statement For Current Year Ended December 31 $ 83,500 (34,600) Sales Cost of goods sold Gross profit Salaries expense Depreciation expense Income before taxes Income tax expense Net income 48,900 10,300 12,900 25,700 6,100 $ 19,600 Current Year $ 58,200 18,300 164,100 240,600 90,900 (41,000) $ 290,500 $ 43,600 900 44,500 202,500 43,500 $ 290,500 Additional Information on Current-Year Transactions a. No dividends are declared or paid. b. Issued additional stock for $16.800 cash. c. Purchased equipment for cash; no equipment was sold. Prior Year $ 58,100 22,300 128,800 209, 200 76,200 (28,100) $ 257,300 $ 46,600 1,100 47,700 185,700 23,900 $ 257,300 1. Use the above information to prepare a statement of cash flows for the current year using the indirect method. Note: Amounts to be deducted should be indicated by a minus sign. MONTGOMERY, INCORPORATED Statement of Cash Flows (Indirect Method) For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash used in operating activities: Income statement items not affecting cash Depreciation expense Changes in current operating assets and liabilities Decrease in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salarles payable Net cash provided by operating activities Cash flows from investing activities Net cash provided by investing activities Cash flows from financing activities Cash received from stock issuance Cash balance at beginning of year Cash balance at end of year $ 19,600 12.900 4,000 (35,300) (3.000) (200) 16.800 $ $ $ $ $ (2,000) 0 16,800 14,800 58,100 72,900
Expert Answer:
Answer rating: 100% (QA)
A cash flow statement It indicates cash inflow and outflow information for a particular time period ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
I think that the three most effective strategies to motivate employee's when leading change are transforming and delegating leadership and creating high trust through communication. As we have...
-
Under what circumstances would a company plan on repaying a loan to a bank in its Cash Budget? Discuss each of them briefly.
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also....
-
Show how you could prepare each of the following compounds from cyclopentanone, D2O, and any necessary organic or inorganic reagents.
-
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $75,000 per year for the next two years, or you can...
-
Philip and Lance have decided to form a partnership by investing \($100000\) and \($80000\) respectively. The following plans for dividing profits and losses are under consideration. Sharing profits...
-
You are planning to estimate a short-run production function for your firm, and you have collected the following data on labor usage and output: Labor usage Output 3 ..................... 1 7...
-
15. Sort the following integer array into descending order using selection sort. Number the passes, and show the state of the array after each pass. Pass (8, 2, 5, 6, 7) State of the array 16. Sort...
-
The following rates were observed for a first-order, irreversible reaction, carried out on a spherical catalyst: dp = 0.625 cm robs=0.09 mol/gcat.hr dp = 0.10 cm Tobs = 0.275 mol/gcat.hr Strong...
-
Consider the following circuit: V(t) Vin 20 V(t) +1. The portion inside the dotted line is the amplifier; typically amplifiers have external connections for the input signal, the output signal, the...
-
What do you understand about the cognitive dissonance that can occur in goal setting? Why is it so dangerous for good administration for this to happen?
-
A company has maintained the following relationships in recent years: Quick assets comprise 25% cash, 15% marketable securities and 60% book debts. During 20172018, the company eamed Rs. 1,20,000 or...
-
Extend the billing process model in Exercise 4.5 (page 125) as follows. Any time after the first transaction has failed, the customer may pay the invoice directly to the ISP. If so, the billing...
-
In your own idea or perspective, in more than five sentences. 1. Assume that you are an Equity analyst how are you going undergo the valuation of specific that you want to recommend your client....
-
The accounting definition that underlies the balance sheet can be expressed accurately as: Assets Liabilities Stockholders' equity Stockholders' equity Assets + Liabilities Liabilities ...
-
Consider the prices and dividends for the following stock, what is the return of the stock if you sell it right after August 15, 2019. (Hint: Compute the annualized return) Date June 15, 2019 July 1,...
-
Ex. (17): the vector field F = x i-zj + yz k is defined over the volume of the cuboid given by 0x a,0 y b, 0zc, enclosing the surface S. Evaluate the surface integral ff, F. ds?
-
Evaluate the common stock of Build Right Incorporated as an investment. Utilize the four ratios that help determine whether a business is generating enough net income to reward the stockholders for...
-
Compute the following items for the statement of cash flows: 1. The beginning and ending Retained Earnings balances are $52,000 and $73,000, respectively. Net income for the period is $97,000. How...
-
Sundance Marine Supply, Inc., lost its entire inventory in a hurricane that occurred on March 31, 2018. Over the past five years, gross profit has averaged 35 percent of net sales. The companys...
-
In a test with a separating and throttling calorimeter, the following observations were made : Water separated \(=2.04 \mathrm{~kg}\) Steam discharged from throttling calorimeter \(=20.6...
-
Entropy of wet steam is given by (a) \(s_{f}+x s_{f g}\) (b) \(x s_{g}\) (c) \(s_{g}+s_{f g}\) (d) \(x s_{f}\)
-
Entropy of \(1 \mathrm{~kg}\) of water at \(T K\) is given by (a) \(c_{p w} \ln \frac{\mathrm{T}}{273}\) (b) \(c_{p w} \log \frac{\mathrm{T}}{273}\) (c) \(c_{p w} \ln \frac{\mathrm{T}}{273}\) (d)...
Study smarter with the SolutionInn App