Statement of cash flows partial direct method cash

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Statement of Cash Flows (Partial)(Direct Method)Cash flows from operating activitiesCash received from customers ($380,000$25,000)$355,000Cash paid to suppliers ($225,000$19,400$14,000)$191,600Operating expenses paid ($95,000 + $8,000$16,700)86,300Taxes paid ($24,000 + $3,000$2,600)24,400302,300Net cash provided by operating activities$52,700Downloaded by ireadbooks too ([email protected])lOMoARcPSD|9772305
The Accounting Information System3 - 59Ex. 23-123Statement of cash flows (indirect method).The following information is taken from French Corporation's financial statements:December 3120182017Cash$63,000$27,000Accounts receivable102,00080,000Allowance for doubtful accounts(4,500)(3,100)Inventory160,000175,000Prepaid expenses7,5006,800Land100,00060,000Buildings294,000244,000Accumulated depreciation(32,000)(13,000)Patents20,00035,000$710,000$611,700Accounts payable$90,000$84,000Accrued liabilities54,00063,000Bonds payable125,00060,000Common stock100,000100,000Retained earningsappropriated80,00010,000Retained earningsunappropriated276,000302,700Treasury stock, at cost(15,000)(8,000)$710,000$611,700For 2018 YearNet income$78,300Depreciation expense19,000Amortization of patents5,000Cash dividends declared and paid35,000Gain or loss on sale of patentsnoneInstructionsPrepare a statement of cash flows for French Corporation for the year 2018. (Use the indirectmethod.)Ans: NA, LO: 2, Bloom: AP, Difficulty: Moderate, Min: 15-20, AACSB: Analytic, AICPA BB: None, AICPA FN: Measurement, AICPA PC: Problem Solving,IMA: Reporting, IFRS: NoneDownloaded by ireadbooks too ([email protected])lOMoARcPSD|9772305
Test Bank for Intermediate Accounting, Sixteenth Edition3 - 60Solution 23-123French CorporationStatement of Cash FlowsFor the Year Ended December 31, 2018Increase (Decrease) in CashCash flows from operating activitiesNet income$78,300Adjust. to reconcile net income to net cash providedby operating activities:Depreciation expense$19,000Patent amortization5,000Increase in accounts receivable(20,600)Decrease in inventory15,000Increase in prepaid expenses(700)Increase in accounts payable6,000Decrease in accrued liabilities(9,000)14,700Net cash provided by operating activities93,000Cash flows from investing activitiesPurchase of land(40,000)Purchase of buildings(50,000)Sale of patents10,000Net cash used by investing activities(80,000)Cash flows from financing activitiesSale of bonds65,000Purchase of treasury stock(7,000)Payment of cash dividends(35,000)Net cash provided by financing activities23,000Net increase in cash$36,000Cash, January 1, 201827,000Cash, December 31, 2018$63,000Downloaded by ireadbooks too ([email protected])lOMoARcPSD|9772305
The Accounting Information System3 - 61Ex. 23-124Preparation of statement of cash flows (format provided).The balance sheets for Kinder Company showed the following information. Additional informationconcerning transactions and events during 2018 are presented below.Kinder CompanyBalance SheetDecember 3120182017Cash$30,900$10,200Accounts receivable (net)43,30020,300Inventory35,00042,000Long-term investments015,000Property, plant & equipment236,500150,000Accumulated depreciation(37,700)(25,000)$308,000$212,500Accounts payable$17,000$26,500Accrued liabilities21,00017,000Long-term notes payable70,00050,000Common stock130,00090,000Retained earnings70,00029,000$308,000$212,500Additional data:1.Net income for the year 2018, $61,000.

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Cash Flow Statement, primary purpose of the statement of cash flows

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