Bonita Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise isanxious to have prepared is a statement of cash flows. Financial statements of Bonita Industries for 2022 and 2021 are providedbelow.CashAccounts receivableInventoryProperty, plant and equipmentLess accumulated depreciationAccounts payableIncome taxes payableBonds payableCommon stockRetained earningsBALANCE SHEETS$606000(319000)12/31/22$407000358000385000287000$1437000$177000354000361000218000327000$1437000$961000(303000 )12/31/21$194000216000478000658000$1546000$98000390000602000218000238000$1546000 INCOME STATEMENTFor the Year Ended December 31, 2022Sales revenueCost of salesGross profitSelling expensesAdministrative expensesIncome from operationsInterest expenseIncome before taxesIncome taxesNet incomeThe following additional data were provided:$598000193000$8400000The net cash provided (used) by financing activities is715100012490007910004580007100038700097000$2900001. Dividends for the year 2022 were $201000.2. During the year, equipment was sold for $240000. This equipment cost $352000 originally and had a book value of$287000 at the time of sale. The loss on sale was incorrectly charged to cost of sales.3. All depreciation expense is in the selling expense category.

Solution The cash flow statement is a financial statement which is used to calculate the cash…

Answered: The net cash provided (used) by…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 26BE

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Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2020 statement of cash flows. Code Letter Effect A Added to net income in the operating section D Deducted from net income in the operating section R-I Cash receipt in investing section P-I Cash payment in investing section R-F Cash receipt in financing section P-F Cash payment in financing section N Noncash investing and financing activity (a) Purchase of land and building. select a code letter (b) Decrease in accounts receivable. select a code letter (c) Issuance of stock. select a code letter (d) Depreciation expense. select a code letter (e) Sale of land at book value. select a code letter…
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1. Your answer is partially correct. Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak’s 2020 statement of cash flows. Code Letter Effect A Added to net income in the operating section D Deducted from net income in the operating section R-I Cash receipt in investing section P-I Cash payment in investing section R-F Cash receipt in financing section P-F Cash payment in financing section N Noncash investing and financing activity (a) Purchase of land and building. select a code letter (b) Decrease in accounts receivable. select a code letter (c) Issuance of stock. select a code letter…
Novak Corporation is preparing its 2020 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak's 2020 statement of cash flows. Code Letter Effect A Added to net income in the operating section D Deducted from net income in the operating section R-I Cash receipt in investing section P-I Cash payment in investing section R-F Cash receipt in financing section P-F Cash payment in financing section N Noncash investing and financing activity Items _____ a. Purchase of land and building. _____ b. Decrease in accounts receivable. _____ c. Issuance of stock. _____ d. Depreciation expense. _____ e. Sale of land at book value. _____ f. Sale of land at a gain. _____ g. Payment of dividends. _____ h. Increase in accounts receivable. _____ i. Purchase of available-for-sale debt investment. _____ j. Increase in accounts payable. _____ k.…
Use the information provided below to prepare the Cash Flow Statement of Alto Limited for the year ended 31 December 2022. INFORMATION The following amounts were obtained from the Statement of Comprehensive Income for the year ended 31 December 2022 and Statement of Financial Position of Alto Limited as at 31 December 2022 and 31 December 2021: Sales Cost of sales Depreciation Operating profit Interest expense Company tax for the year Property, plant and equipment (carrying value) Long-term investments Inventories Accounts receivable Prepaid expenses Cash and cash equivalents Ordinary share capital (All shares issued at R10 each) Retained earnings Non-current liabilities Accounts payable Accrued expenses Dividends payable Company tax payable 31 Dec 2022 R 11 000 000 6 500 000 750 000 1 650 000 450 000 400 000 6 250 000 350 000 2 150 000 1 700 000 200 000 500 000 3 100 000 3 000 000 3 600 000 1 100 000 100 000 200 000 50 000 31 Dec 2021 R Note: ■ Dividends paid and recommended during…

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