Statement of Cash Flows (Indirect Method) North Company's income statement and comparative balance sheets as of...
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Statement of Cash Flows (Indirect Method) North Company's income statement and comparative balance sheets as of December 31 of the current year and the previous year follow: NORTH COMPANY Income Statement For the Year Ended December 31 Sales Revenue Cost of Goods Sold $550,000 Wages Expense 195,000 31,000 24,000 20,000 (25,000) 795,000 $(25,000) $770,000 Advertising Expense Depreciation Expense Interest Expense Gain on Sale of Land Net Loss NORTH COMPANY Balance Sheets Assets Cash Accounts Receivable Inventory Prepaid Advertising Plant Assets Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Bonds Payable Common Stock Retained Earnings Treasury Stock Total Liabilities and Stockholders' Equity Dec. 31, Current Year Dec. 31, Previous Year $80,000 42,000 107,000 10,000 360,000 (80,000) $519,000 $19,000 6,000 210,000 245,000 69,000 (30,000) $519,000 $32,000 49,000 115,000 14,000 210,000 (56,000) $364,000 $25,000 245,000 94,000 $364,000 During the current year, North sold land for $70,000 cash that had originally cost $45,000. North also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash. Accounts payable relate to merchandise purchases. a. Calculate the change in cash 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. NORTH COMPANY Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Loss. Add (deduct) items to convert net income to cash basis Depreciation Gain on Sale of Land Accounts Receivable Inventory Prepaid Advertising Likpato Accounts Payable Interest Payable Cash Flow Used by Operating Activities Cash Flow from Investing Activities m Sale of Land Purchase of Plant Assets Warpedom Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Purchase of Treasury Stock Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year Please answer all parts of the question. # ÷ # + + $ $ 0 0 0 0 0 0 0 0 - U 0 0 0 0 A 0 0 0 → ↑ Statement of Cash Flows (Indirect Method) North Company's income statement and comparative balance sheets as of December 31 of the current year and the previous year follow: NORTH COMPANY Income Statement For the Year Ended December 31 Sales Revenue Cost of Goods Sold $550,000 Wages Expense 195,000 31,000 24,000 20,000 (25,000) 795,000 $(25,000) $770,000 Advertising Expense Depreciation Expense Interest Expense Gain on Sale of Land Net Loss NORTH COMPANY Balance Sheets Assets Cash Accounts Receivable Inventory Prepaid Advertising Plant Assets Accumulated Depreciation Total Assets Liabilities and Stockholders' Equity Accounts Payable Interest Payable Bonds Payable Common Stock Retained Earnings Treasury Stock Total Liabilities and Stockholders' Equity Dec. 31, Current Year Dec. 31, Previous Year $80,000 42,000 107,000 10,000 360,000 (80,000) $519,000 $19,000 6,000 210,000 245,000 69,000 (30,000) $519,000 $32,000 49,000 115,000 14,000 210,000 (56,000) $364,000 $25,000 245,000 94,000 $364,000 During the current year, North sold land for $70,000 cash that had originally cost $45,000. North also purchased equipment for cash, acquired treasury stock for cash, and issued bonds payable for cash. Accounts payable relate to merchandise purchases. a. Calculate the change in cash 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. NORTH COMPANY Statement of Cash Flows For Year Ended December 31 Cash Flow from Operating Activities Net Loss. Add (deduct) items to convert net income to cash basis Depreciation Gain on Sale of Land Accounts Receivable Inventory Prepaid Advertising Likpato Accounts Payable Interest Payable Cash Flow Used by Operating Activities Cash Flow from Investing Activities m Sale of Land Purchase of Plant Assets Warpedom Cash Used by Investing Activities Cash Flow from Financing Activities Issuance of Bonds Payable Purchase of Treasury Stock Cash Provided by Financing Activities Net Change in Cash Cash at Beginning of Year Cash at End of Year Please answer all parts of the question. # ÷ # + + $ $ 0 0 0 0 0 0 0 0 - U 0 0 0 0 A 0 0 0 → ↑
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Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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