- Heads Up Company Was Started Several Years Ago By Two Hockey Instructors The Company S Comparative Balance Sheets And I 1 (36.79 KiB) Viewed 10 times
- Heads Up Company Was Started Several Years Ago By Two Hockey Instructors The Company S Comparative Balance Sheets And I 2 (25.66 KiB) Viewed 10 times
Heads Up
Company was started several years ago by two hockey instructors. The
company's comparative balance sheets and income
statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income
Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Current Year $ 6,560 980 6,380 (1,660) $ 12,260 $ 620 420 1,600 5,800 3,820 $ 12,260 $ 39,100 36,600 330 1,000 $ 1,170 Previous Year $4,520 1,910 5,800 (1,330) $ 10,900 $ 1,200 750 500 5,800 2,650 $ 10,900 Additional Data: a. Bought new hockey equipment for cash, $580. b. Borrowed $1,100 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash.
Required: 1. Prepare the
statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP
COMPANY 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 Liabilities Cash Flows from Investing Activities: Cash Flows from Financing Activities: $ 0 0 0 0