Statement of cash flows partial indirect method cash

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Statement of Cash Flows (Partial)(Indirect Method)Cash flows from operating activitiesNet income$42,000Adjustments to reconcile net income to netcash provided by operating activities:Increase in trade accounts receivable$(25,000)Decrease in inventories19,400Decrease in salaries payable (operating expenses)(8,000)Increase in trade accounts payable17,000Decrease in income taxes payable(3,000)Depreciation expense16,700Increase in deferred tax liability2,60019,700Net cash provided by operating activities$61,700(b)Cowan, Inc.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 – $17,000)$188,600Operating expenses paid ($85,000 + $8,000 – $16,700)76,300Taxes paid ($28,000 + $3,000 – $2,600)28,400293,300Net cash provided by operating activities$61,700Ex. 23-126—Statement of cash flows (indirect method).The following information is taken from French Corporation's financial statements:December 3120132012Cash$70,000$27,000Accounts receivable102,00080,000Allowance for doubtful accounts(4,500)(3,100)Inventory155,000175,000Prepaid expenses7,5006,800Land100,00060,000Buildings287,000244,000Accumulated depreciation(32,000)(13,000)Patents20,00035,000$705,000$611,70023 - 45
Statement of Cash FlowsEx. 23-126(cont.)Accounts payable$90,000$84,000Accrued liabilities54,00063,000Bonds payable125,00060,000Common stock100,000100,000Retained earnings—appropriated80,00010,000Retained earnings—unappropriated271,000302,700Treasury stock, at cost(15,000)(8,000)$705,000$611,700For 2013 YearNet income$63,300Depreciation expense19,000Amortization of patents5,000Cash dividends declared and paid25,000Gain or loss on sale of patentsnoneInstructionsPrepare a statement of cash flows for French Corporation for the year 2013. (Use the indirectmethod.)23 - 46
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 informationconcerning transactions and events during 2013 are presented below.Kinder CompanyBalance SheetDecember 3120132012Cash$40,900$10,200Accounts receivable (net)38,30020,300Inventory35,00042,000Long-term investments015,000Property, plant & equipment231,500150,000Accumulated 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 2013, $66,000.2.

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Term
Spring
Professor
Mary
Tags
Balance Sheet, Cash Flow Statement, Generally Accepted Accounting Principles

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