Statement of cash flows partial direct method cash

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Ex. 23-148—Statement of cash flows (indirect method).The following information is taken from French Corporation's financial statements:December 3120162015Cash$90,000$27,000Accounts receivable92,00080,000Allowance for doubtful accounts(4,500)(3,100)Inventory155,000175,000Prepaid expenses7,5006,800Land90,00060,000Buildings287,000244,000Accumulated depreciation(32,000)(13,000)Patents20,00035,000$705,000$611,700Accounts payable$90,000$84,000Accrued liabilities54,00063,000Bonds payable125,00060,000Share capital-ordinary100,000100,000Retained earnings—appropriated80,00010,000Retained earnings—unappropriated271,000302,700Treasury shares, at cost(15,000)(8,000)$705,000$611,700For 2016 YearNet income$58,300Depreciation expense19,000Amortization of patents5,000Cash dividends declared and paid20,000Gain or loss on sale of patentsnoneInstructionsPrepare a statement of cash flows for French Corporation for the year 2016. (Use the indirectmethod.)
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Chapter 8 / Exercise 25
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
Raabe/Young/Nellen/Hoffman
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Test Bank for Intermediate Accounting, IFRS EditionSolution 23-148French CorporationStatement of Cash FlowsFor the Year Ended December 31, 2016Increase (Decrease) in CashCash flows from operating activitiesNet income$58,300Adjust. to reconcile net income to net cash providedby operating activities:Depreciation expense$19,000Patent amortization5,000Increase in accounts receivable(10,600)Decrease in inventory20,000Increase in prepaid expenses(700)Increase in accounts payable6,000Decrease in accrued liabilities(9,000)29,700Net cash provided by operating activities88,000Cash flows from investing activitiesPurchase of land(30,000)Purchase of buildings(43,000)Sale of patents10,000Net cash used by investing activities(63,000)Cash flows from financing activitiesSale of bonds65,000Purchase of treasury shares(7,000)Payment of cash dividends(20,000)Net cash provided by financing activities38,000Net increase in cash$63,000Cash, January 1, 201627,000Cash, December 31, 2016$90,00023 - 48
Statement of Cash FlowsEx. 23-149—Preparation of statement of cash flows (format provided).The statements of financial position for Kinder Company showed the following information.Additional information concerning transactions and events during 2016 are presented below.Kinder CompanyStatements of Financial PositionDecember 3120162015Property, plant & equipment$236,500$150,000Accumulated depreciation(37,700)(25,000)Long-term investments015,000Inventory35,00042,000Accounts receivable (net)43,30020,300Cash30,90010,200$308,000$212,500Share capital-ordinary$130,000$90,000Retained earnings70,00029,000Long-term notes payable70,00050,000Accounts payable21,00017,000Accrued liabilities17,00026,500$308,000$212,500Additional data:1.Net income for the year 2016, $76,000.2.Depreciation on plant assets for the year, $12,700.3.Sold the long-term investments for $28,000.4.Paid dividends of $35,000.5.Purchased machinery costing $26,500, paid cash.6.Purchased machinery and gave a $60,000 long-term note payable.7.Paid a $40,000 long-term note payable by issuing ordinary shares.23 - 49

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Term
Fall
Professor
John
Tags
Accounting, Cash Flow Statement, Statement of Cash Flows, Dividend
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The document you are viewing contains questions related to this textbook.
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
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Chapter 8 / Exercise 25
South-Western Federal Taxation 2020: Corporations, Partnerships, Estates and Trusts
Raabe/Young/Nellen/Hoffman
Expert Verified

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