Question: Please prepare a cash flow statement for operating activities, investing activities, and financing activities. Thank you! Problem 16-9A Preparing the statement of cash flows (indirect

Problem 16-9A Preparing the statement of cash flows (indirect method) L056 CHECK FIGURE: Net cash inflows from financing activities $00 (thousand) Lock & Key Inc. began operations on January 1, 2016. Its post-closing trial balance at December and 2017, is shown below along with some other information. 6 Lock & Key Inc. ncome Statement For Year Ended December 31, 2017 (000s) Lock & Key Inc. Post-Closing Trial Balance (000s) December 31 2017 Revenues: 3,300 Account 2,520R 2016 $2,160 $1,260 Cost of goods sold. Receivables Merchandise inventory2,040 2,280 Property, plant, and equipment..3,720 3,960 Accumulated depreciation1,440 1,380 Accounts payable. 1,440 1,080 360 Bonds payable 1.680 1,800 Common shares....3,084 2.040 Retained earnings2.136 2,280 Expenses Other expenses.... Depreciation expense.240 Total expenses 660 240 3.420 Accrued I $ 120 240 Loss CHAPTER 16 Reporting and Analyzing Cash Flows Other information regarding Lock & Key Inc. and its activities during 2017: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. Equipment was sold for cash equal to its book value. Required Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2017. Analysis Component: Assume that the investing activities section of the statement of cash flows showed a net cash outflow of $14 thousand. What could this represent? Is a net cash outflow from investing ac- tivities necessarily favourable or unfavourable? Explain
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
