Shallow Waters Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement are presented below, along with additional information.
Current Year Prior Year Balance Sheet at December 31
Accounts receivable 1,000 800
Prepaid expenses 130 190
Equipment 500 0
Wages payable$840 $1,300
Contributed capital 2,100 1,500
Retained earnings 2,490 2,390 $5,430 $5,190
Income Statement for Current Year
Wages expense 34,000
Other expenses 4,350
- Prepaid expenses relate to rent paid in advance.
- Other expenses were paid in cash.
- Purchased equipment for $500 cash at the end of the prior year to be used starting in current year.
- An owner contributed capital by paying $600 cash in exchange for the company's stock.
I need help knowing how to prepare the statement of cash flows for the year ended December 31, current year, using the indirect method, and how to list cash outflows as negative amounts.
Answer Shallow Waters Company Statement of Cash Flows for the year ended December 31 Cash flows from operating activities... View the full answer
Sign up to view the full answer
Statement of cash flow: It is the statement which includes the outflow or inflow of cash in the... View the full answer