Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 68,850 $ 64,500 16,250 23,350 23,350 210,550 (60,400) $ 258,600 $ 10,300 1,800 18,600 151,400 (46,250) $ 211,600 $ 20,400 5,300 54,550 100,300 72,500 66,400 91,650 47,000 $ 258,600 $ 211,600 $ 200,000 97,000 14,150 43,500 $ 45,350 Additional Data: a. Bought equipment for cash, $59,150. b. Paid $17,950 on the long-term note payable. c. Issued new shares of stock for $33,900 cash. d. Dividends of $700 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts.
Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Accounts payable Wages payable Note payable, long-term Common stock and additional paid-in capital Retained earnings Income statement for current year Sales Cost of goods sold Depreciation expense Other expenses Net income Current Year Prior Year $ 68,850 $ 64,500 16,250 23,350 23,350 210,550 (60,400) $ 258,600 $ 10,300 1,800 18,600 151,400 (46,250) $ 211,600 $ 20,400 5,300 54,550 100,300 72,500 66,400 91,650 47,000 $ 258,600 $ 211,600 $ 200,000 97,000 14,150 43,500 $ 45,350 Additional Data: a. Bought equipment for cash, $59,150. b. Paid $17,950 on the long-term note payable. c. Issued new shares of stock for $33,900 cash. d. Dividends of $700 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable includes only inventory purchases made on credit. Required: 1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year. Note: List cash outflows as negative amounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vishnu
Transcribed Image Text:Sharp Screen Films, Incorporated, is developing its annual financial statements at December 31, current year. The statements are
complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized
as follows:
Balance sheet at December 31
Cash
Accounts receivable
Merchandise inventory
Property and equipment
Less: Accumulated depreciation
Accounts payable
Wages payable
Note payable, long-term
Common stock and additional paid-in capital
Retained earnings
Income statement for current year
Sales
Cost of goods sold
Depreciation expense
Other expenses
Net income
Current Year Prior Year
$ 68,850
$ 64,500
16,250
23,350
23,350
210,550
(60,400)
$ 258,600
$ 10,300
1,800
18,600
151,400
(46,250)
$ 211,600
$ 20,400
5,300
54,550
100,300
72,500
66,400
91,650
47,000
$ 258,600
$ 211,600
$ 200,000
97,000
14,150
43,500
$ 45,350
Additional Data:
a. Bought equipment for cash, $59,150.
b. Paid $17,950 on the long-term note payable.
c. Issued new shares of stock for $33,900 cash.
d. Dividends of $700 were declared and paid.
e. Other expenses all relate to wages.
f. Accounts payable includes only inventory purchases made on credit.
Required:
1. Prepare the statement of cash flows using the direct method for the year ended December 31, current year.
Note: List cash outflows as negative amounts.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education