Question

In: Accounting

B. Prepare a statement of cash flow on both the direct and indirect method 2017 2016...

B. Prepare a statement of cash flow on both the direct and indirect method

2017

2016

Assets:

Cash

            245,000

                70,000

Accounts receivable, net

              87,000

                65,000

Inventory

              54,000

                60,000

Property, plant & equipment

            650,000

              600,000

Accumulated depreciation

            (90,000)

              (60,000)

Total Assets

            946,000

              735,000

Liabilities & Equity

Accounts payable

              44,000

                40,000

Accrued liabilities

              41,000

                40,000

Common stock

            460,000

              460,000

Retained earnings

            401,000

              195,000

Total liabilities and equity

            946,000

              735,000

Sales

        1,150,000

Cost of goods sold

            625,000

Gross profit

            525,000

Operating expenses

            180,000

Pre-tax income

            345,000

Income taxes

              69,000

Net income

            276,000

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

C. Prepare a statement of cash flow on both the direct and indirect method 2017 2016...
C. Prepare a statement of cash flow on both the direct and indirect method 2017 2016 Change Assets: Cash 215,000 70,000 145,000 Accounts receivable, net 87,000 65,000 22,000 Inventory 54,000 60,000 -6,000 Property, plant & equipment 750,000 600,000 150,000 Accumulated depreciation -110,000 -60,000 -50,000 Total Assets 996,000 735,000 261,000 Liabilities & Equity Accounts payable 44,000 40,000 4,000 Accrued liabilities 41,000 40,000 1,000 Common stock 460,000 460,000 Retained earnings 451,000 195,000 256,000 Total liabilities and equity 996,000 735,000 261,000 Sales 1,450,000...
F. Prepare a statement of cash flow on both direct and indirect method 2017 2016 Change...
F. Prepare a statement of cash flow on both direct and indirect method 2017 2016 Change Assets: Cash 215,000 70,000 145,000 Accounts receivable, net 87,000 65,000 22,000 Inventory 74,000 60,000 14,000 Prepaid expenses 12,000 20,000 -8,000 Property, palnt & equipment 780,000 600,000 180,000 Accumulated depreciation -110,000 -60,000 -50,000 Total Assets 1,058,000 755,000 303,000 Liabilities & Equity Accounts payable 32,000 40,000 -8,000 Accrued liabilities 26,000 40,000 -14,000 Taxes payable 15,000 4,000 11,000 Long-term Notes Payable 100,000                         -    Common stock 200,000...
F. Prepare a statement of cash flow on both direct and indirect method 2017 2016 Change...
F. Prepare a statement of cash flow on both direct and indirect method 2017 2016 Change Assets: Cash 215,000 70,000 145,000 Accounts receivable, net 87,000 65,000 22,000 Inventory 74,000 60,000 14,000 Prepaid expenses 12,000 20,000 -8,000 Property, palnt & equipment 780,000 600,000 180,000 Accumulated depreciation -110,000 -60,000 -50,000 Total Assets 1,058,000 755,000 303,000 Liabilities & Equity Accounts payable 32,000 40,000 -8,000 Accrued liabilities 26,000 40,000 -14,000 Taxes payable 15,000 4,000 11,000 Long-term Notes Payable 100,000 0 100,000 Common stock 200,000...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016 Change Assets: Cash 215,000 70,000 145,000 Accounts receivable, net 87,000 55,000 32,000 Inventory 74,000 60,000 14,000 Prepaid expenses 12,000 20,000 -8,000 Investments 70,000 80,000 -10,000 Property, plant & equipment 750,000 550,000 200,000 Accumulated depreciation -90,000 -70,000 -20,000 Patents 6,000 10,000 -4,000 Total Assets 1,124,000 775,000 349,000 Liabilities & Equity Accounts payable 37,000 50,000 -13,000 Accrued liabilities 26,000 40,000 -14,000 Taxes payable 18,000 4,000 14,000...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016 Change Assets: Cash 215,000 70,000 145,000 Accounts receivable, net 87,000 55,000 32,000 Inventory 74,000 60,000 14,000 Prepaid expenses 12,000 20,000 -8,000 Investments 70,000 80,000 -10,000 Property, plant & equipment 750,000 550,000 200,000 Accumulated depreciation -90,000 -70,000 -20,000 Patents 6,000 10,000 -4,000 Total Assets 1,124,000 775,000 349,000 Liabilities & Equity Accounts payable 37,000 50,000 -13,000 Accrued liabilities 26,000 40,000 -14,000 Taxes payable 18,000 4,000 14,000...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
I. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016 Change Assets: Cash 215,000 70,000 145,000 Accounts receivable, net 87,000 55,000 32,000 Inventory 74,000 60,000 14,000 Prepaid expenses 12,000 20,000 -8,000 Investments 70,000 80,000 -10,000 Property, plant & equipment 750,000 550,000 200,000 Accumulated depreciation -90,000 -70,000 -20,000 Patents 6,000 10,000 -4,000 Total Assets 1,124,000 775,000 349,000 Liabilities & Equity Accounts payable 37,000 50,000 -13,000 Accrued liabilities 26,000 40,000 -14,000 Taxes payable 18,000 4,000 14,000...
H. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016...
H. Prepare a statement of cash flow on both a direct and indirect basis 2017 2016 Assets: Cash             225,000                 50,000 Accounts receivable, net               95,000                 84,000 Inventory               52,000                 60,000 Prepaid expenses               13,000                 20,000 Investments               70,000                 10,000 Property, plant & equipment             750,000               600,000 Accumulated depreciation             (90,000)               (60,000) Patents               16,000                 20,000 Total Assets         1,131,000               784,000 Liabilities & Equity Accounts payable               44,000                 50,000 Accrued...
Prepare a statement of cash flow using the DIRECT METHOD. (please show all calculations) 2017 2016...
Prepare a statement of cash flow using the DIRECT METHOD. (please show all calculations) 2017 2016 Assets: Cash                140,000           60,000 Accounts receivable, net                  87,000           65,000 Inventory                  55,000           50,000 Prepaid expenses                  12,000           20,000 Investments                  70,000           20,000 Property, plant & equipment                660,000         500,000 Accumulated depreciation              (100,000)         (60,000) Patents                  16,000           20,000 Total Assets                940,000         675,000 Liabilities & Equity Accounts payable                  40,000           45,000 Accrued liabilities                  15,000           20,000 Taxes payable                  10,000             5,000 Long-term Notes Payable                100,000           50,000 Common stock                100,000         100,000 Additional paid in capital...
Indirect method vs. Direct method for Cash Flow Statement The indirect method considers the opening and...
Indirect method vs. Direct method for Cash Flow Statement The indirect method considers the opening and closing balance of ledger accounts in determining the movements and computing cash flows. If there are wrong postings in the ledger account the cash flows determined are not accurate since only opening and closing balances are considered. In direct method since each line item of ledger is classified into cash and non cash it leads to accurate computation of cash flows. The indirect method...
Prepare a statement of cash flows using the indirect method (please show all calculations) 2017 2016...
Prepare a statement of cash flows using the indirect method (please show all calculations) 2017 2016 Assets: Cash                200,000           80,000 Accounts receivable, net                  87,000           65,000 Inventory                  55,000           50,000 Prepaid expenses                  12,000           20,000 Property, plant & equipment                700,000         500,000 Accumulated depreciation              (100,000)         (60,000) Total Assets                954,000         655,000 Liabilities & Equity Accounts payable                  37,000           25,000 Accrued liabilities                  26,000           20,000 Taxes payable                  15,000             5,000 Long-term Notes Payable                110,000           50,000 Common stock                100,000         100,000 Additional paid in capital                285,000         260,000 Retained earnings                381,000         195,000...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT