Business, 25.02.2020 17:51 CAPEPOPPA

Indirect Method - Cash flow statement

Sean Seymour Company

Comparative balance sheet - December 31

Assets: 20x2 20x1

Cash $26,000 $13,000

Accounts receivable 18,000 14,000

Inventories 38,000 35,000

Property, Plant & Equip. 70,000 78,000

Accumulated depreciation ( 30,000) ( 24,000)

122,000 116,000

Liabilities & Stockholders’

Equity:

Accounts payable 29,000 33,000

Income taxes payable 15,000 20,000

Bonds payable 20,000 10,000

Common stock 25,000 25,000

Retained earnings 33,000 28,000

122,000 116,000

Sean Seymour Co.

Income statement for the year ended 12/31/x2

Sales $240,000

Less:

COGS 180,000

Selling 28,000

Admin expenses 6,000

Income taxes 7,000

Interest expense 2,000 223,000

Net Income 17,000

 Dividends of $12,000 were declared and paid

 During the year, equipment was sold for $10,000 cash. This equipment

cost $15,000 originally & had accumulated depreciation of $5,000 at the time of

sale.

 All depreciation expense, $11,000, is in the selling expense category

 All sales and purchases are on account

 Additional equipment was purchased for $7,000 cash

Required: Prepare a statement of cash flows using the indirect method

Balance Reconciling Items 20xx Balance Check Balance
Debits 12/31/20xx Debits Credits 12/31/20xx 12/31/20xx
Cash Sean Seymour
Accounts receivable Cash Flow Statement
Inventory 12/31/20xx
Plant Assets
Operating Activities:
Credits
Accumulated Depreciation
Accounts payable
Income taxes payable
Bonds payable
Capital stock
Retained earnings Cash Provided by (Used in) Operating Activities
- - Investing Activities:
Statement of Cash Flow Effects
Operating activities

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 01:00

How does the economy of cuba differ from the economy of north korea? in north korea, the government’s control of the economy has begun to loosen. in cuba, the government maintains a tight hold over the economy. in cuba, the government’s control of the economy has begun to loosen. in north korea, the government maintains a tight hold over the economy. in north korea, there is economic uncertainty in exchange for individual choice. in cuba, there is economic security in exchange for government control. in cuba, there is economic uncertainty in exchange for individual choice. in north korea, there is economic security in exchange for government control.\

Answers: 2

Answer

Business, 22.06.2019 14:30

United continental holdings, inc., (ual), operates passenger service throughout the world. the following data (in millions) were adapted from a recent financial statement of united. sales (revenue) $38,901 average property, plant, and equipment 17,219 average intangible assets 8,883 1. compute the asset turnover. round your answer to two decimal places.

Answers: 2

Answer

Business, 22.06.2019 15:30

University hero is considering expanding operations beyond its healthy sandwiches. jim axelrod, vice president of marketing, would like to add a line of smoothies with a similar health emphasis. each smoothie would include two free health supplements such as vitamins, antioxidants, and protein. jim believes smoothie sales should fill the slow mid-afternoon period. adding the line of smoothies would require purchasing additional freezer space, machinery, and equipment. jim provides the following projections of net sales, net income, and average total assets in support of his proposal. sandwichesonly sandwiches and smoothies net sales $ 750,000 $ 1,350,000 net income 120,000 210,000 average total assets 350,000 750,000 return on assetschoose numerator ÷ choose denominator = return on assets÷ = return on assets÷ = profit margin÷ = profit margin÷ = asset turnover÷ = asset turnover÷ = times

Answers: 2

Answer

Business, 22.06.2019 17:30

Dr. sperry, a biologist, is using excel to track growth rates of different populations of bacteria. she has a very complex formula in one cell. it begins with “round”. dr. sperry would like to see exactly how excel’s calculation reached the final rounded value that she sees in the cell. what could dr. sperry do to best understand how the calculation was made? try different formulas on her own until she reaches the value shown in excel click on the evaluate formula button in the formulas tab and then click “step in” select the cell and then look at the formula in the formula field of the ribbon remove “round” from the formula in order to see the actual value before rounding

Answers: 2

Answer

You know the right answer?

Indirect Method - Cash flow statement

Sean Seymour Company

Comparative bal...

Questions