Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement are provided below, along with additional information. Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Less: Accumulated Depreciation Accounts Payable Wages Payable Long-Term Bank Loan Payable Contributed Capital Retained Earnings $ 7,035 $ 5,100 870 2,050 6,555 (2,120) 5,700 (1,425) $ 12,340 $ 11,425 $ 790 $ 1,440 265 960 2,210 750 5,000 5,000 4,075 3,275 $ 12,340 $ 11,425 Income Statement (current year) Lessons Revenue Wages Expense Depreciation Expense Income Tax Expense Net Income $ 41,000 38,500 695 1,005 $ 800 Additional notes: a. Bought new hockey equipment for cash, $855. b. Borrowed $1,460 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: 0 Cash flows from investing activities: Cash flows from financing activities: Net increase in cash during the year Cash balance, January 1 Cash balance, December 31 0 0 $ 0 Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement are provided below, along with additional information. Current Year Prior Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Less: Accumulated Depreciation Accounts Payable Wages Payable Long-Term Bank Loan Payable Contributed Capital Retained Earnings $ 7,035 $ 5,100 870 2,050 6,555 (2,120) 5,700 (1,425) $ 12,340 $ 11,425 $ 790 $ 1,440 265 960 2,210 750 5,000 5,000 4,075 3,275 $ 12,340 $ 11,425 Income Statement (current year) Lessons Revenue Wages Expense Depreciation Expense Income Tax Expense Net Income $ 41,000 38,500 695 1,005 $ 800 Additional notes: a. Bought new hockey equipment for cash, $855. b. Borrowed $1,460 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: 0 Cash flows from investing activities: Cash flows from financing activities: Net increase in cash during the year Cash balance, January 1 Cash balance, December 31 0 0 $ 0
Expert Answer:
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these finance questions
-
Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's fixed costs are 3,900,000 p per year. The variable cost of each component is...
-
Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets and income statement follow, along with additional information. Additional Data: a....
-
A 40-cm-long, 800-W electric resistance heating element with diameter 0.5 cm and surface temperature 120C is immersed in 75 kg of water initially at 20C. Determine how long it will take for this...
-
Before microwave ovens are sold, the manufacturer must check to ensure that the radiation coming through the door is below a specified safe limit. The amounts of radiation leakage (mW/cm2) with the...
-
Does drying barley seeds in a kiln increase the yield of barley? A famous experiment by William S. Gosset (who discovered the t distributions) investigated this question. Eleven pairs of adjacent...
-
Use the all-possible-regressions selection on the fuel consumption data in Table B.18. Perform a thorough analysis of the best candidate models. Compare your results with stepwise regression....
-
Arctica manufactures snowmobiles and ATVs. These products are made in different departments, and each department has its own manager. Each responsibility performance report only includes those costs...
-
A manufacturer reports partially completed T-accounts for this year. Note: Assume all raw materials were used as direct materials. Raw Materials Inventory Debit Credit Beginning 14,800 Purchases...
-
Michelle is a computer programmer that works in the research and development unit at her company. Her only job is to brainstorm and create new code and software to improve the business processes....
-
Would it make MGT a stronger theory if it dropped the feminist perspective and just focused on any non-dominant groups that are muted in the English language? Does MGT provide a good explanation for...
-
What other cultural artifacts exist in our society that could be studied within a Cultural Studies framework?
-
Take a position on the essentialist argument relative to Feminist Standpoint Theory, and defend your position.
-
How do you define violence on television? Do you think its possible to calculate violent acts as Gerbner and his colleagues have done? Explain your answer.
-
Describe how Media Ecology theorists might react to the current news today? What would be his major criticisms and his major objections? What would he be particularly interested in?
-
Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company The following information is available for The Lucille Corporation for 2014: Prepare the 2014 income...
-
Problem 2. (0.6 points, 0.2 points for each question) (a) A company turns its inventory 2 times a month. Its months-of-supply = Its days-of-supply = Please show your analysis below: _months. days. (1...
-
In the second quarter of 2021, personal consumption expenditures, exports, and imports increased. Investment and government expenditure decreased. Real GDP increased by 6.5 percent following a 6.3...
-
When real GDP increased in the second quarter of 2021, consumption expenditure, exports, and imports increased. Fixed investment decreased, which included a decrease in business inventory investment....
-
Are U.S. exports part of U.S. induced expenditure or autonomous expenditure? Are U.S. imports part of U.S. induced expenditure or autonomous expenditure? U.S. imports are recovering thanks to the $2...
Study smarter with the SolutionInn App