XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2017 2016 Balance Sheet at December 31 Cash $ 37,120 $ 30,800 Accounts Receivable 37,850 30,800 Merchandise Inventory 47,900 40,900 Property and Equipment 175,250 132,000 Less: Accumulated Depreciation (38,250 ) (33,000 ) $ 259,870 $ 201,500 Accounts Payable $ 42,850 $ 32,500 Wages Payable 1,430 2,050 Note Payable, Long−Term 32,700 44,100 Contributed Capital 104,500 80,600 Retained Earnings 78,390 42,250 $ 259,870 $ 201,500 Income Statement for 2017 Sales $ 202,000 Cost of Goods Sold 117,160 Other Expenses 48,700 Net Income $ 36,140 Additional Data: Bought equipment for cash, $43,250. Paid $11,400 on the long-term note payable. Issued new shares for $23,900 cash. No dividends were declared or paid. Other expenses included depreciation, $5,250; wages, $24,300; taxes, $8,350; other, $10,800. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2017 2016 Balance Sheet at December 31 Cash $ 37,120 $ 30,800 Accounts Receivable 37,850 30,800 Merchandise Inventory 47,900 40,900 Property and Equipment 175,250 132,000 Less: Accumulated Depreciation (38,250 ) (33,000 ) $ 259,870 $ 201,500 Accounts Payable $ 42,850 $ 32,500 Wages Payable 1,430 2,050 Note Payable, Long−Term 32,700 44,100 Contributed Capital 104,500 80,600 Retained Earnings 78,390 42,250 $ 259,870 $ 201,500 Income Statement for 2017 Sales $ 202,000 Cost of Goods Sold 117,160 Other Expenses 48,700 Net Income $ 36,140 Additional Data: Bought equipment for cash, $43,250. Paid $11,400 on the long-term note payable. Issued new shares for $23,900 cash. No dividends were declared or paid. Other expenses included depreciation, $5,250; wages, $24,300; taxes, $8,350; other, $10,800. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 3P
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Question
XS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of
2017 | 2016 | |||||
Balance Sheet at December 31 | ||||||
Cash | $ | 37,120 | $ | 30,800 | ||
Accounts Receivable | 37,850 | 30,800 | ||||
Merchandise Inventory | 47,900 | 40,900 | ||||
Property and Equipment | 175,250 | 132,000 | ||||
Less: Accumulated Depreciation | (38,250 | ) | (33,000 | ) | ||
$ | 259,870 | $ | 201,500 | |||
Accounts Payable | $ | 42,850 | $ | 32,500 | ||
Wages Payable | 1,430 | 2,050 | ||||
Note Payable, Long−Term | 32,700 | 44,100 | ||||
Contributed Capital | 104,500 | 80,600 | ||||
|
78,390 | 42,250 | ||||
$ | 259,870 | $ | 201,500 | |||
Income Statement for 2017 | ||||||
Sales | $ | 202,000 | ||||
Cost of Goods Sold | 117,160 | |||||
Other Expenses | 48,700 | |||||
Net Income | $ | 36,140 | ||||
Additional Data:
- Bought equipment for cash, $43,250.
- Paid $11,400 on the long-term note payable.
- Issued new shares for $23,900 cash.
- No dividends were declared or paid.
- Other expenses included depreciation, $5,250; wages, $24,300; taxes, $8,350; other, $10,800.
- Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
Required:
1. Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
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