The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. Balance Sheet Assets Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Total assets Liabilities: Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: Common stock Retained earnings Total liabilities and stockholders' equity Income Statement Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $108,300 136,000 102,000 110,500 194,000 102,000 (56,160) (29,000) $484,140 $429,100 $ 17,000 3,400 85,000 156,000 222,740 $484,140 $126,600 119,000 $480,000 250,000 27,160 120,000 $ 82,840 $ 20,400 1,700 102,000 136,000 169,000 $429,100 Other information from the company's records includes the following: a. Bought equipment for cash, $92,000. b. Paid $17,000 on long-term note payable. c. Issued new shares of common stock for $20,000 cash. d. Cash dividends of $29,100 were declared and paid to stockholders. e. Accounts Payable arose from inventory purchases on credit. f. Income tax expense ($20,710) and interest expense ($5,100) were paid in full at the end of both years and are included in Other Expenses. Required: a. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and cash outflows as a negative value.) WICKERSHAM BROTHERS Inc. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilites: Cash Flows from Investing Activities: Cash Flows from Financing Activities: Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures: The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. Balance Sheet Assets Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Total assets Liabilities: Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: Common stock Retained earnings Total liabilities and stockholders' equity Income Statement Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $108,300 136,000 102,000 110,500 194,000 102,000 (56,160) (29,000) $484,140 $429,100 $ 17,000 3,400 85,000 156,000 222,740 $484,140 $126,600 119,000 $480,000 250,000 27,160 120,000 $ 82,840 $ 20,400 1,700 102,000 136,000 169,000 $429,100 Other information from the company's records includes the following: a. Bought equipment for cash, $92,000. b. Paid $17,000 on long-term note payable. c. Issued new shares of common stock for $20,000 cash. d. Cash dividends of $29,100 were declared and paid to stockholders. e. Accounts Payable arose from inventory purchases on credit. f. Income tax expense ($20,710) and interest expense ($5,100) were paid in full at the end of both years and are included in Other Expenses. Required: a. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and cash outflows as a negative value.) WICKERSHAM BROTHERS Inc. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilites: Cash Flows from Investing Activities: Cash Flows from Financing Activities: Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures:
Expert Answer:
Answer rating: 100% (QA)
Wickersham Brothers Inc Statement of Cash Flows For the year ended December 31 Amount C... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following financial statements were prepared for the management of MNM Ltd. The statements contain some information that will be disclosed in note form in the general purpose financial statements...
-
The classified balance sheet and selected income statement data for Quinn, Inc., as of December 31 , 201 2, are presented next. Selected Income Statement Data Gross Profit...
-
The following trial balance was drawn from the records of Havel Company as of October 1, 2018: Required a. Divide the class into groups, each with four or five students. Organize the groups into...
-
On January 2, 2013, Parker Corporation invests in the stock of Quarry Corporation. Quarry's book value is $4 million and its assets and liabilities are fairly reported. Quarry reports income of $3...
-
On December 31, 2010, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Berclair purchased 24 million...
-
Selected accounts included in the property, plant, and equipment section of Lobo Corporation' s balance sheet at December 31, 2013, had the following balances. During 2014, the following transactions...
-
Lockridge-Priest, Inc., was organized in 2008. At December 31, 2008, the Lockridge-Priest balance sheet reported the following stockholders' equity: Requirements 1. During 2009 , the company...
-
Hot Lunch Delivery Service has always had a policy to pay stockholders annual dividends in an amount exactly equal to net income for the year. Joe Alberg, the companys president, is confused because...
-
Exercise 12-4 (Algo) Indirect: Cash flows from operating activities LO P2 The following income statement and additional year-end information is provided. SONAD COMPANY Income Statement For Year Ended...
-
Benetton has entered into a quantity flexibility contract for a seasonal product with its retailer. If the retailer orders O units, Benetton is willing to provide up to another 35 percent if needed....
-
Currently, ACME Inc. has a capital structure consisting of 35% debt and 65% equity. ACME's debt currently has a 8% yield to maturity. The risk-free rate is 4%, and the market risk premium is 6%....
-
Simple Interest Formula: P = IRT P = Principle I = Interest R = Rate T = Time Practice Set #1 Calculate the amount of interest and the amount to repay in the table below. No Principal Rate Time...
-
A hydroelectric power facility converts the gravitational potential energy of water behind a dam to electric energy. (For each answer, enter a number.) (a) What is the gravitational potential energy...
-
The expression **-5x+4x+14 is equivalent to x+2
-
Question 1: Answer the prompt below: Prompt: Consider a family you have seen in media, real or fictional (for example The Obamas or The Simpsons). Using what you read about the four types of family...
-
First - Think of something involved in acquiring real property - a house for instance - and what could go wrong that the buyer might not find out about until after the purchase is over and has moved...
-
2. What are the three main aspects that organizations must face and address while driving toward object O Leadership, teamwork, and communication O Profitability, liquidity, and solvency O Growth,...
-
Which of the companies has the lowest accounts receivable turnover in the year 20X2? a. Company A. b. Company B. c. Company C. d. CompanyD. 20X1 20X2 Credit Sales Average Receivables Balance $1.0...
-
Below are selected T-accounts for Gauge Company. Required: Complete the following journal entries and answer the following questions: a. Purchased additional investments in affiliated companies for...
-
What is the primary purpose of comparative financial statements?
-
You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have follows. The word high refers to the top third of the industry; average is the...
-
The \(T d S\) equation \(T d S=C_{P} d T-T\left(\frac{\partial V}{\partial T} ight)_{P} d P\) is valid where entropy is a function of (a) \(T\) and \(P\) (b) \(P\) and \(V\) (c) \(T\) and \(V\) (d)...
-
The inversion temperature of hydrogen is (a) \(315 \mathrm{~K}\) (b) \(202 \mathrm{~K}\) (c) \(275 \mathrm{~K}\) (d) \(345 \mathrm{~K}\).
-
The inversion temperature of helium is (a) \(460 \mathrm{~K}\) (b) \(40 \mathrm{~K}\) (c) \(620 \mathrm{~K}\) (d) \(823 \mathrm{~K}\).
Study smarter with the SolutionInn App