Statement of cash flows partial indirect method cash

Statement of Cash Flows (Partial)
(Indirect Method)
Cash flows from operating activities
Net income $42,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Increase in trade accounts receivable $(25,000)
Decrease in inventories 19,400
Decrease in salaries payable (operating expenses) (8,000)
Increase in trade accounts payable 17,000
Decrease in income taxes payable (3,000)
Depreciation expense 16,700
Increase in deferred tax liability 2,600 19,700
Net cash provided by operating activities $61,700
(b) Cowan, Inc.
Statement of Cash Flows (Partial)
(Direct Method)
Cash flows from operating activities
Cash received from customers ($380,000 – $25,000) $355,000
Cash paid to suppliers ($225,000 – $19,400 – $17,000) $188,600
Operating expenses paid ($85,000 + $8,000 – $16,700) 76,300
Taxes paid ($28,000 + $3,000 – $2,600) 28,400 293,300
Net cash provided by operating activities $ 61,700
Ex. 23-126 —Statement of cash flows (indirect method).
The following information is taken from French Corporation's financial statements:
December 31
2013 2012
Cash $70,000 $ 27,000
Accounts receivable 102,000 80,000
Allowance for doubtful accounts (4,500) (3,100)
Inventory 155,000 175,000
Prepaid expenses 7,500 6,800
Land 100,000 60,000
Buildings 287,000 244,000
Accumulated depreciation (32,000) (13,000)
Patents 20,000 35,000
$705,000 $611,700
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Statement of Cash Flows
Ex. 23-126 (cont.)
Accounts payable $ 90,000 $ 84,000
Accrued liabilities 54,000 63,000
Bonds payable 125,000 60,000
Common stock 100,000 100,000
Retained earnings—appropriated 80,000 10,000
Retained earnings—unappropriated 271,000 302,700
Treasury stock, at cost (15,000 ) (8,000 )
$705,000 $611,700
For 2013 Year
Net income $63,300
Depreciation expense 19,000
Amortization of patents 5,000
Cash dividends declared and paid 25,000
Gain or loss on sale of patents none
Instructions
Prepare a statement of cash flows for French Corporation for the year 2013. (Use the indirect
method.)
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Statement of Cash Flows
Ex. 23-127 —Preparation of statement of cash flows (format provided).
The balance sheets for Kinder Company showed the following information. Additional information
concerning transactions and events during 2013 are presented below.
Kinder Company
Balance Sheet
December 31
2013 2012
Cash $ 40,900 $ 10,200
Accounts receivable (net) 38,300 20,300
Inventory 35,000 42,000
Long-term investments 0 15,000
Property, plant & equipment 231,500 150,000
Accumulated depreciation (37,700 ) (25,000 )
$308,000 $212,500
Accounts payable $ 17,000 $ 26,500
Accrued liabilities 21,000 17,000
Long-term notes payable 70,000 50,000
Common stock 130,000 90,000
Retained earnings 70,000 29,000
$308,000 $212,500
Additional data:
1. Net income for the year 2013, $66,000.
2.