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Using Excel, prepare the Statement of Cash Flows Indirect Method. Your SOCF should be based upon the income statement and the additional information below;Additional Information;Increase in Accounts Receivables=$4,000;Increase in Accounts Payables=$16,000;Increase in Income Taxes Payable=$300;Decrease in Prepaid Expenses=$10,000;Decrease in Merchandise Inventory=$14,000;Decrease in Long Term Notes Payable=$20,000;Cash Paid to Purchase Land=$50,000;Cash Paid to Purchase Equipment=$15,000;Cash Paid to Retire Bonds=$25,000;Cash Paid to for Dividends=$10,000;Cash Received from the Sale of common stock=$50,000;Cash at the start of the year=$24,000;Part 2: Direct Method;Using Excel and the below information please prepare the complete statement of cash flows using the direct method.;Additional Information;Cash Received from Customers=$80,000;Cash Payments for Merchandise=$10,000;Cash Payments for Operating Expenses=$5,000;Cash payments for Interest=$6,000;Cash Payments for Income Taxes=$3,000;Income Statement;For the Year Ended December 31, 2011;Sales $248,000;Cost of Goods Sold $116,000;Gross Profit $132,000;Operating Expenses;Wages and Salaries Expense $44,000;Rent Expense $16,000;Depreciation Expense $30,000;Other Operating Expenses $18,000 $108,000;Income from Operations $24,000;Gain on Sale of Equipment $26,000;Income before Income Taxes $50,000;Income Tax Expense $17,500;Net Income $32,500

 

Paper#75721 | Written in 18-Jul-2015

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