- Pa12 6 Algo Preparing And Interpreting A Statement Of Cash Flows Direct Method Lo 12 3 Lo 12 4 Lo 12 5 Lo 12 6 1 (35.97 KiB) Viewed 16 times
- Pa12 6 Algo Preparing And Interpreting A Statement Of Cash Flows Direct Method Lo 12 3 Lo 12 4 Lo 12 5 Lo 12 6 2 (33.3 KiB) Viewed 16 times
PA12-6 (Algo) Preparing and Interpreting a
Statement of Cash Flows (Direct Method) [LO 12-3, LO 12-4, LO 12-5, LO 12-6] 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. Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment $5,920 810 $3,740 1,570 4,510 4,100 Accumulated Depreciation-Equipment (1,320) (1,160) Total Assets $ 9,920 $ 8,250 Accounts Payable $ 690 $ 1,100 590 750 Salaries and Wages Payable Notes Payable (long-term) Common Stock 1,500 500 Retained Earnings 4,100 3,040 4,100 1,800 Total Liabilities and Stockholders' Equity $ 9,920 $ 8,250 Income
Statement Service Revenue $ 41,300 Salaries and Wages Expense Depreciation Expense 38,800 160 1,100 Income Tax Expense Net Income $ 1,240 Additional Data: a. Bought new hockey equipment for cash, $410. b. Borrowed $1,000 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 direct method. (Amounts to be deducted should be indicated with a minus sign.)
Required: 1. Prepare the
statement of cash flows for the current year ended December 31 using the direct 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: 4 0 Cash Flows from Investing Activities: Cash Flows from Financing Activities: $ 0 0 0