Required:1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deductedshould be indicated with a minus sign.)HEADS UP COMPANYStatement of Cash FlowsFor the Year Ended December 31Cash Flows from Operating Activities:Net IncomeAdjustments to Reconcile Net Income to Net CashProvided by Operating Activities:Cash Flows from Investing Activities:Cash Flows from Financing Activities:$ Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and incomestatement follow, along with additional information.Current YearPrevious YearBalance Sheet at December 31$ 4,0001,7505,000(1,250)$ 9,500$ 1,000Cash$ 6,300Accounts Receivable900EquipmentAccumulated Depreciation-Equipment5,500(1,500)Total Assets$11, 200Accounts PayableSalaries and Wages PayableNote Payable (long-term)5005007501,7005,0003,5005005,0002,250$ 9,500Common StockRetained EarningsTotal Liabilities and Stockholders' Equity$11, 200Income Statement$37,50035,000Service RevenueSalaries and Wages ExpenseDepreciation ExpenseIncome Tax Expense2501,000Net Income$ 1,250Additional Data:a. Bought new hockey equipment for cash, $500.b. Borrowed $1,200 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 liabilityaccounts relating to income tax, assume that this expense was fully paid in cash.

Cash flow statement is a sort of financial statement. It considers movements of cash and cash…

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 $ 6,300 $ 4,000 Accounts Receivable 900 1,750 Equipment Accumulated Depreciation-Equipment 5,500 5,000 (1,250) (1,500) $11,200 $ 9,500 $ 1,000 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 500 500 750 1,700 5,000 3,500 500 5,000 2,250 Total Liabilities and Stockholders' Equity $11, 200 $ 9,500 Income Statement Service Revenue $37,500 35,000 Salaries and Wages Expense Depreciation Expense Income Tax Expense 250 1,000 $ 1,250 Net Income Additional Data: a. Bought new hockey equipment b. Borrowed $1,200 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. cash,

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 $ 6,300 $ 4,000 Accounts Receivable 900 1,750 Equipment Accumulated Depreciation-Equipment 5,500 5,000 (1,250) (1,500) $11,200 $ 9,500 $ 1,000 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 500 500 750 1,700 5,000 3,500 500 5,000 2,250 Total Liabilities and Stockholders' Equity $11, 200 $ 9,500 Income Statement Service Revenue $37,500 35,000 Salaries and Wages Expense Depreciation Expense Income Tax Expense 250 1,000 $ 1,250 Net Income Additional Data: a. Bought new hockey equipment b. Borrowed $1,200 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. cash,

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 14M

See similar textbooks

Similar questions

Riverbed Company's income statement for the year ended December 31, 2025, contained the following condensed information. Service revenue Operating expenses (excluding depreciation) Depreciation expense Loss on sale of equipment Income before income taxes Income tax expense Net income 2025 2024 $622,000 counts receivable $38,000 $53,000 59,000 25,000 $848,000 706,000 142,000 Riverbed's balance sheet contained the following comparative data at December 31. 40,000 $102,000
Wildhorse Co. Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding depreciation $624,100 Depreciation expense 55,400 Loss on disposal of plant assets 25.200 Income before income taxes Income tax expense Net income 2021 $59,800 28,900 6,400 $970,400 Wildhorse's balance sheets contained the following comparative data at December 31. 2022 Accounts receivable $75,200 Accounts payable 40,400 Income taxes payable 13,000 704,700 265,700 39,100 $226,600 Adjustments to reconcile net income to Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a sign e.g.-15.000 or in parenthesis e.g. (15,000).) Wildhorse Co. Partial Statement of Cash Flows
Use the following information for questions The following information is available for Cuyi Company for the year ended December 31, 2021 Accounts Payable P2,700 Accumulated Depreciation-Equipment 4,000 Cuyi, Capital 7,800 Intangible Asset 2,500 Notes Payable (Due in 5 years) 7,500 Accounts Receivable 1,500 Cash 2,600 Short-Term Investment 1,000 Equipment 7,500 Long-Term Investment 6,900 Use the above information to prepare a balance sheet for the year ended December 31, 2021.
Oliver Company provided the following information for the years 20X1 and 20X2: Oliver Company Income Statement For the Year Ended December 31, 20X2 1 Sales $75,000.00 2 Cost of goods sold (20,000.00) 3 Depreciation expense (2,000.00) 4 Other expenses (13,000.00) 5 Net income $40,000.00 Oliver Company Comparative Balance Sheets At December 31, 20X1 and 20X2 1 20X1 20X2 2 Assets: 3 Cash $24,600.00 $64,600.00 4 Accounts receivable $5,400.00 $9,200.00 5 Inventory 8,000.00 6,000.00 6 Property, plant and equipment 160,000.00 175,000.00 7 Accumulated depreciation (18,000.00) (20,000.00) 8 Land 20,400.00 47,000.00 9 Total assets $200,400.00 $281,800.00 10 Liabilities and Equity: 11 Accounts payable $8,600.00 $10,000.00 12 Mortgage payable 0.00 40,000.00 13…
A comparative balance sheet and an income statement for Rowan Company are given below: Rowan CompanyComparative Balance Sheet(dollars in millions) EndingBalance BeginningBalance Assets Current assets: Cash and cash equivalents $ 70 $ 91 Accounts receivable 536 572 Inventory 620 580 Total current assets 1,226 1,243 Property, plant, and equipment 1,719 1,656 Less accumulated depreciation 640 480 Net property, plant, and equipment 1,079 1,176 Total assets $ 2,305 $ 2,419 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 205 $ 180 Accrued liabilities 94 105 Income taxes payable 72 88 Total current liabilities 371 373 Bonds payable 180 310 Total liabilities 551 683 Stockholders' equity: Common stock 800 800 Retained earnings 954 936 Total…
A comparative balance sheet and an income statement for Rowan Company are given below: Rowan CompanyComparative Balance Sheet(dollars in millions) EndingBalance BeginningBalance Assets Current assets: Cash and cash equivalents $ 70 $ 91 Accounts receivable 536 572 Inventory 620 580 Total current assets 1,226 1,243 Property, plant, and equipment 1,719 1,656 Less accumulated depreciation 640 480 Net property, plant, and equipment 1,079 1,176 Total assets $ 2,305 $ 2,419 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 205 $ 180 Accrued liabilities 94 105 Income taxes payable 72 88 Total current liabilities 371 373 Bonds payable 180 310 Total liabilities 551 683 Stockholders' equity: Common stock 800 800 Retained earnings 954 936 Total…
A comparative balance sheet and an income statement for Rowan Company are given below: Rowan CompanyComparative Balance Sheet(dollars in millions) EndingBalance BeginningBalance Assets Current assets: Cash and cash equivalents $ 70 $ 91 Accounts receivable 536 572 Inventory 620 580 Total current assets 1,226 1,243 Property, plant, and equipment 1,719 1,656 Less accumulated depreciation 640 480 Net property, plant, and equipment 1,079 1,176 Total assets $ 2,305 $ 2,419 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 205 $ 180 Accrued liabilities 94 105 Income taxes payable 72 88 Total current liabilities 371 373 Bonds payable 180 310 Total liabilities 551 683 Stockholders' equity: Common stock 800 800 Retained earnings 954 936 Total…
The income statement disclosed the following items for the year: Depreciation expense $40,700 Gain on disposal of equipment 23,760 Net income 254,700 The changes in the current asset and liability accounts for the year are as follows: Increase (Decrease) Accounts receivable $6,340 Inventory (3,610) Prepaid insurance (1,350) Accounts payable (4,300) Income taxes payable 1,350 Dividends payable 950 a. Prepare the Cash Flows from (used for) Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from (used for) operating activities: Adjustments to reconcile net income to net cash flows from (used for) operating activities: Changes in current operating assets and liabilities: Net cash flows from operating activities b. Why is net cash flows from operating activities different than net income? Cash flows…
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Wright Company. Additional information from Wright’s accounting records is provided also. WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) 2021 2020 Assets Cash $ 42 $ 30 Accounts receivable 73 75 Short-term investment 40 15 Inventory 75 70 Land 50 60 Buildings and equipment 550 400 Less: Accumulated depreciation (115 ) (75 ) $ 715 575 Liabilities Accounts payable $ 28 $ 35 Salaries payable 2 5 Interest payable 5 3 Income tax payable 9 12 Notes payable 0 30 Bonds payable 160 100 Shareholders’ Equity Common stock 250 200 Paid-in capital—excess of par 126 100…
[The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow: Weaver CompanyComparative Balance Sheetat December 31 This Year Last Year Assets Cash $ 17 $ 12 Accounts receivable 293 229 Inventory 151 195 Prepaid expenses 9 6 Total current assets 470 442 Property, plant, and equipment 511 432 Less accumulated depreciation (81) (71) Net property, plant, and equipment 430 361 Long-term investments 26 33 Total assets $ 926 $ 836 Liabilities and Stockholders' Equity Accounts payable $ 300 $ 225 Accrued liabilities 71 80 Income taxes payable 72 65 Total current liabilities 443 370 Bonds payable 196 172 Total liabilities 639 542 Common stock 163 200 Retained earnings 124 94 Total stockholders’ equity 287 294 Total liabilities and stockholders' equity $ 926 $ 836 Weaver CompanyIncome StatementFor This Year Ended December 31 Sales $ 754 Cost of…
The following data are adapted from the financial statements of Betty's Shops, Inc. E (Click the icon to view the data.) Prepare Betty's condensed balance sheet as of December 31, 2018. (Round your answers to the nearest whole dollar.) Betty's Shops, Inc. Balance Sheet December 31, 2018 Assets Data Table Total Current Assets Plant Assets Less: Accumulated Depreciation Total Current Assets $4 978,750 Total Assets Accumulated Depreciation 2,100,000 Liabilities Total Liabilities 1.460,000 Total Current Liabilities Preferred Stock Long-term Liabilities Debt Ratio 73% Total Liabilities Current Ratio 1.45 Stockholders' Equity Stockholders' Equity Print Done Total Liabilities and Stockholders' Equity
The following three accounts appear in the general ledger of Herrick Corp. during 2020. Equipment Date Debit Credit Balance Jan. 1 Balance 161,200 July 31 Purchase of equipment 68,100 229,300 Sept. 2 Cost of equipment constructed 54,600 283,900 Nov. 10 Cost of equipment sold 49,100 234,800 Accumulated Depreciation—Equipment Date Debit Credit Balance Jan. 1 Balance 70,700 Nov. 10 Accumulated depreciation on equipment sold 31,200 39,500 Dec. 31 Depreciation for year 24,200 63,700 Retained Earnings Date Debit Credit Balance Jan. 1 Balance 104,200 Aug. 23 Dividends (cash) 15,800 88,400 Dec. 31 Net income 66,700 155,100 From the postings in the accounts, indicate how the information is reported on a statement of cash flows using the indirect method. The…