Required a. Calculate the change in cash and cash equivalents that occurred during the current year....

Transcribed Image Text:

Required a. Calculate the change in cash and cash equivalents that occurred during the current year. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during the current year $ 0 b. Use a negative sign with cash outflow answers. RAINBOW COMPANY Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Depreciation Patent Amortization Loss on Sale of Equipment Gain on Sale of Investments Accounts Receivable Inventory Prepaid Expenses Accounts Payable Interest Payable Income Tax Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Sale of Investments Purchase of Land Improvements to Building Sale of equipment Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Issuance of Common Stock Payment of Dividends Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year Check 0 0 0 0 0 0 " " 0 0 0 0 0 0 0 0 . 0 0 0 0 0 0 $ 0 Required a. Calculate the change in cash and cash equivalents that occurred during the current year. b. Prepare a statement of cash flows using the indirect method. a. Change in Cash during the current year $ 0 b. Use a negative sign with cash outflow answers. RAINBOW COMPANY Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Income Add (deduct) items to convert net income to cash basis Depreciation Patent Amortization Loss on Sale of Equipment Gain on Sale of Investments Accounts Receivable Inventory Prepaid Expenses Accounts Payable Interest Payable Income Tax Payable Cash Flow Provided by Operating Activities Cash Flow from Investing Activities Sale of Investments Purchase of Land Improvements to Building Sale of equipment Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Issuance of Common Stock Payment of Dividends Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year Check 0 0 0 0 0 0 " " 0 0 0 0 0 0 0 0 . 0 0 0 0 0 0 $ 0