Preparing the Statement of Cash Flows: Indirect Method EBA. Keeper Corporation's income statement for the year ended June 30, 2014, and its comparative balance sheets for June 30, 2014 and 2013 follow. Keeper Corporation Income Statement For the Year Ended June 30, 2014 Sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before income taxes Income taxes expense Net income Keeper Corporation Comparative Balance Sheets June 30, 2014 and 2013 Assets Cash Accounts receivable (net) Inventory Prepaid expenses Furniture Accumulated depreciation-furniture Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long-term) Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity 2014 $ 69,900 21,000 43,400 3,200 55,000 (9,000) $183,500 $ 13,000 1,200 37,000 115,000 17,300 $183,500 $234,000 156,000 $ 78,000 45,000 $ 33,000 2,800 $ 30,200 12,300 $ 17,900 2013 $ 12,500 26,000 48,400 2,600 60,000 (5,000) $144,500 $ 14,000 1,800 35,000 90,000 3,700 $144,500 Keeper issued a $22,000 note payable for purchase of furniture; sold at carrying value furniture that cost $27,000 with accumulated depreciation of $15,300; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300. Prepare Keeper's statement of cash flows for the year 2014 using the indirect method.
Preparing the Statement of Cash Flows: Indirect Method EBA. Keeper Corporation's income statement for the year ended June 30, 2014, and its comparative balance sheets for June 30, 2014 and 2013 follow. Keeper Corporation Income Statement For the Year Ended June 30, 2014 Sales Cost of goods sold Gross margin Operating expenses Operating income Interest expense Income before income taxes Income taxes expense Net income Keeper Corporation Comparative Balance Sheets June 30, 2014 and 2013 Assets Cash Accounts receivable (net) Inventory Prepaid expenses Furniture Accumulated depreciation-furniture Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long-term) Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity 2014 $ 69,900 21,000 43,400 3,200 55,000 (9,000) $183,500 $ 13,000 1,200 37,000 115,000 17,300 $183,500 $234,000 156,000 $ 78,000 45,000 $ 33,000 2,800 $ 30,200 12,300 $ 17,900 2013 $ 12,500 26,000 48,400 2,600 60,000 (5,000) $144,500 $ 14,000 1,800 35,000 90,000 3,700 $144,500 Keeper issued a $22,000 note payable for purchase of furniture; sold at carrying value furniture that cost $27,000 with accumulated depreciation of $15,300; recorded depreciation on the furniture for the year, $19,300; repaid a note in the amount of $20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300. Prepare Keeper's statement of cash flows for the year 2014 using the indirect method.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 27BE
Related questions
Question
Transcribed Image Text:Preparing the Statement of Cash Flows: Indirect Method
E8A. Keeper Corporation's income statement for the year ended June 30, 2014, and its
comparative balance sheets for June 30, 2014 and 2013 follow.
Keeper Corporation
Income Statement
For the Year Ended June 30, 2014
Sales
Cost of goods sold
Gross margin
Operating expenses
Operating income
Interest expense
Income before income taxes
Income taxes expense
Net income
Assets
Keeper Corporation
Comparative Balance Sheets
June 30, 2014 and 2013
Cash
Accounts receivable (net)
Inventory
Prepaid expenses
Furniture
Accumulated depreciation-furniture
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Income taxes payable
Notes payable (long-term)
Common stock, $10 par value
Retained earnings
Total liabilities and stockholders' equity
2014
$ 69,900
21,000
43,400
3,200
55,000
(9,000)
$183,500
$ 13,000
1,200
37,000
115,000
17,300
$183,500
$234,000
156,000
$ 78,000
45,000
$ 33,000
2,800
$ 30,200
12,300
$ 17,900
2013
$ 12,500
26,000
48,400
2,600
60,000
(5,000)
$144,500
$ 14,000
1,800
35,000
90,000
3,700
$144,500
Keeper issued a $22,000 note payable for purchase of furniture; sold at carrying
value furniture that cost $27,000 with accumulated depreciation of $15,300; recorded
depreciation on the furniture for the year, $19,300; repaid a note in the amount of
$20,000; issued $25,000 of common stock at par value; and paid dividends of $4,300.
Prepare Keeper's statement of cash flows for the year 2014 using the indirect method.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College