Oliver Company provided the following information for the years 20X1 and 20X2:

Oliver Company

Income Statement

For the Year Ended December 31, 20X2

1	Sales	$75,000.00
2	Cost of goods sold	(20,000.00)
3	Depreciation expense	(2,000.00)
4	Other expenses	(13,000.00)
5	Net income	$40,000.00

Oliver Company

Comparative Balance Sheets

At December 31, 20X1 and 20X2

1		20X1	20X2
2	Assets:
3	Cash	$24,600.00	$64,600.00
4	Accounts receivable	$5,400.00	$9,200.00
5	Inventory	8,000.00	6,000.00
6	Property, plant and equipment	160,000.00	175,000.00
7	Accumulated depreciation	(18,000.00)	(20,000.00)
8	Land	20,400.00	47,000.00
9	Total assets	$200,400.00	$281,800.00
10	Liabilities and Equity:
11	Accounts payable	$8,600.00	$10,000.00
12	Mortgage payable	0.00	40,000.00
13	Stockholders’ equity	191,800.00	231,800.00
14	Total liabilities and stockholders’ equity	$200,400.00	$281,800.00

Required:

1.	Calculate the change in cash flows that serves as the control figure for the statement of cash flows.
2.	Prepare a schedule that provides operating cash flows for the year 20X2 using the indirect method.
3.	Assume that you have all the information provided for Requirement 1 except that you only know the beginning balance of accounts receivable for 20X2. Given this information and assuming that the operating cash flows for 20X2 are $41,000, calculate the ending balance for accounts receivable.

Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows.

Amount Descriptions
Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventory
Depreciation expense
Increase in accounts payable
Increase in accounts receivable
Increase in inventory
Net cash from operating activities
Net income
Net loss

1. Calculate the change in cash flows that serves as the control figure for the statement of cash flows.

2. Prepare a schedule that provides operating cash flows for the year 20X2 using the indirect method. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.)

Oliver Company

Operating Cash Flows Using the Indirect Method

1	Cash flows from operating activities:
2
3	Add (deduct) adjusting items:
4
5
6
7
8

3. Assume that you have all the information provided for Requirement 1 except that you only know the beginning balance of accounts receivable for 20X2. Given this information and assuming that the operating cash flows for 20X2 are $41,000, calculate the ending balance for accounts receivable.

Answer rating: 100% (QA)

Particulars Net Income Add Depreciation Expense Cash flow from Operations Changes in Current AssetsC... View the full answer