Statement of Cash Flows, Operating Activities Section, Indirect Method. Repeat the requirements of P6-9 under the...

Transcribed Image Text:

Statement of Cash Flows, Operating Activities Section, Indirect Method. Repeat the requirements of P6-9 under the indirect method. P6-9 Statement of Cash Flows, Operating Activities Section, Direct Method. Snail Company provided the following V balance sheet and income statement for the current year. Prepare the operating activities section of the cash flow statement using the direct method. Accrued expenses relate to Selling, General and Administrative Expenses. Assets Current Assets Cash Accounts Receivable Merchandise Inventory Total Current Assets Noncurrent Assets Investments in Bonds Property, Plant, and Equipment - net Total Noncurrent Assets Total Assets Liabilities Current Liabilities Accounts Payable Accrued Expenses Snail Company Balance Sheet At December 31 Income Taxes Payable Total Current Liabilities Ending $1,000 5.500 4,000 $10,500 $30,000 $50,000 $80,000 $90,500 $3,200 6,700 1,500 $11,400 Beginning $5,000 7,000 1,800 $13,800 $ 6,000 $60,000 $66,000 $79,800 $ 4,400 6,550 450 $11,400 Noncurrent Liabilities Notes Payable Total Noncurrent Liabilities Total Liabilities Stockholders' Equity Common Stock, $1 Par Value Additional Paid-in Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $35,000 $35,000 $46,400 Sales Cost of Goods Sold Gross Profit $10,000 15,334 18,766 $44,100 $90,500 Snail Company Income Statement For the year ended December 31 Selling, General, and Administrative Expenses Depreciation Expense Total Operating Expenses Income Before Interest and Taxes Interest Expense Income Before Tax Income Tax Expense Net Income $30,000 $30,000 $41,400 $ 9.000 12,000 17,400 $38,400 $79,800 $56,000 33,600 $22,400 $11,600 6,000 $ 17,600 $ 4,800 $ (2,100) $ 2,700 (1,334) $1,366 Statement of Cash Flows, Operating Activities Section, Indirect Method. Repeat the requirements of P6-9 under the indirect method. P6-9 Statement of Cash Flows, Operating Activities Section, Direct Method. Snail Company provided the following V balance sheet and income statement for the current year. Prepare the operating activities section of the cash flow statement using the direct method. Accrued expenses relate to Selling, General and Administrative Expenses. Assets Current Assets Cash Accounts Receivable Merchandise Inventory Total Current Assets Noncurrent Assets Investments in Bonds Property, Plant, and Equipment - net Total Noncurrent Assets Total Assets Liabilities Current Liabilities Accounts Payable Accrued Expenses Snail Company Balance Sheet At December 31 Income Taxes Payable Total Current Liabilities Ending $1,000 5.500 4,000 $10,500 $30,000 $50,000 $80,000 $90,500 $3,200 6,700 1,500 $11,400 Beginning $5,000 7,000 1,800 $13,800 $ 6,000 $60,000 $66,000 $79,800 $ 4,400 6,550 450 $11,400 Noncurrent Liabilities Notes Payable Total Noncurrent Liabilities Total Liabilities Stockholders' Equity Common Stock, $1 Par Value Additional Paid-in Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $35,000 $35,000 $46,400 Sales Cost of Goods Sold Gross Profit $10,000 15,334 18,766 $44,100 $90,500 Snail Company Income Statement For the year ended December 31 Selling, General, and Administrative Expenses Depreciation Expense Total Operating Expenses Income Before Interest and Taxes Interest Expense Income Before Tax Income Tax Expense Net Income $30,000 $30,000 $41,400 $ 9.000 12,000 17,400 $38,400 $79,800 $56,000 33,600 $22,400 $11,600 6,000 $ 17,600 $ 4,800 $ (2,100) $ 2,700 (1,334) $1,366

Answer rating: 100% (QA)

Cashflow Statement using Indirect Method Particulars Cashflow from Operating activities Net Income A... View the full answer